Evans, who only played twice in the County Championship last year, was player of the match in the Big Bash final in January
Laurie Evans has signed a white-ball-only contract with Surrey for the next two seasons.
The 34-year-old, who re-joined his boyhood club in 2020 after spells with Warwickshire and Sussex, was initially on an all-format deal.
But after playing in the LV= Insurance County Championship just twice in 2021, he has agreed a new, extended contract that will see him focus his attention on limited-over cricket. He will now remain at the Kia Oval until at least the end of the 2023 campaign, with the option of an additional year.
Evans has enjoyed a successful winter of T20 cricket, playing a key role in Perth Scorchers' Big Bash title success. In 2020, he was central to Surrey's run to the final, making 363 runs at an average of 45.37, striking at 153.16.
"This is not a choice I would advise any younger player to make while there is still plenty of time for them to achieve so much in the game," said director of cricket Alec Stewart. "However, at this stage of Laurie's career and after discussing it at length with him, I fully understand and respect the decision he has made. I look forward to seeing him perform in T20 cricket for Surrey over the coming seasons."
Since first making headway on the franchise circuit while at Sussex, Evans has also featured in the Caribbean Premier League, the Bangladesh Premier League, Lanka Premier League, Pakistan Super League, the Abu Dhabi T10 League and The Hundred. His name was on the shortlist for the Indian Premier League's mega-auction, but he went unsold.

Evans was player of the match in the final of this year's Big Bash (Darrian Traynor/Getty Images)
"I have made the decision to focus the remainder of my career on white-ball cricket for a number of reasons," he added. "Firstly, I still have a burning ambition to play at international level. The chances of me doing this in Test cricket are gone but I still believe that I could do a job for England in white-ball cricket and by focusing my efforts purely on this, I can best develop my skills further.
"Secondly, I believe this is the best way for me to manage myself physically over the coming years. I am loving my time at the Kia Oval and also the experiences I am getting from playing in franchise competitions around the world.
"Finally, I believe this is the best decision for Surrey County Cricket Club as it allows younger players to gain experience in red-ball cricket with me stepping aside fully. I would like to thank the club for their continued understanding and support."
The move effectively ends Evans' first-class career. He made 3,495 runs in 73 games, averaging 29.36 in the process. He played his final County Championship match last September in a two-wicket defeat by Northamptonshire.