Rashid last week said he intended to focus solely on shorter, white-ball cricket for Yorkshire this season and Hales has penned a deal until the end of the 2019 season that will see him feature only in 50-over and 20-over formats of the game.
Haless decision is likely to strengthen fears that Englands top limited-overs internationals could abandon first class, or red-ball, cricket, which includes five-day Test matches, in favour of playing in lucrative domestic Twenty20 competitions around the world.
But the 29-year-olds decision seemingly ends his hopes of adding to his 11 Test caps, the last of which he earned in August 2016.
"For the next 18 months Im excited to focus entirely on limited overs cricket and want to be part of a Notts team that retains the white ball double and a World Cup winning squad with England," he said in a statement on Twitter.
"The decision to focus on my white ball game wasnt taken lightly or on the spur of the moment, its one Ive thought long and hard about. Its also one Ive discussed at length with the Notts management."
"Alex is entitled to make himself available for whatever format he wants to play, and we respect his decision," said Nottinghamshire director of cricket Mick Newell. "Hes an outstanding white ball player and we look forward to him helping us win more trophies in that format of the game.
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