The 29 year-old wicketkeeper and batsman was a foundation player with the Stars, playing 51 matches in green since the BBL’s inception.
It is the fourth highest number of appearances for the Stars after Glenn Maxwell, Marcus Stoinis and former England international Luke Wright.
Handscomb also sits sixth all-time in runs scored for the club including a century and four 50s.
Perhaps most memorable was his Player of the Match performance against the Perth Scorchers at the MCG in 2015 where he scored 103* from 64 balls to win a high-scoring tussle.
Melbourne Stars Head Coach David Hussey wished Handscomb well.
“Pete has been a fantastic contributor and leader around the group for so many years. I’m lucky enough to have been able to both play alongside him and coach him and he’ll always be part of the broader group,” Hussey said.
Melbourne Stars General Manager Nick Cummins said Handscomb had made an enormous contribution to the club.
“On behalf of the Club, our staff, members and fans I’d like to extend our best wishes to Peter as he continues his BBL career in Tasmania. He has been an outstanding leader and ambassador for the club for nearly a decade and has inspired kids and families at the MCG throughout that time,” Cummins said.
“Peter has been part of the fabric of the club since the start and he will always be welcome at the Melbourne Stars.”