Former England captain Lawrence Dallaglio yesterday retired from international rugby for the second time and will wind up his playing career at the end of the season.

"I believe my international career has run its course and it is time for me to step aside and make room for the young guns kicking down the door," the 35-year-old Wasps backrow forward said yesterday.

Dallaglio first quit England in 2004 after helping them win the 2003 World Cup, but came out of international retirement in 2006 and helped them reach the 2007 World Cup final.

He had made his debut against South Africa in 1995 and won his 85th cap in October's World Cup final against the Springboks, a 15-6 defeat, equalling the total of former winger Rory Underwood and second only for England to prop Jason Leonard.

He holds a remarkable record as the only player to have played in every minute of all his team's matches at the 2003 World Cup, where England beat host's Australia 20-17 in the final.

A one-club man who has led Wasps to two European titles in the European Cup, he said: "I'm probably playing my best rugby in two years, but there will not be another new season (as a player) for me at Wasps."

Dallaglio said he would like to coach in the long term.

Meanwhile, the salary cap for England's top club sides will be increased to £4 million (€5.3 million) from next season.

Premier Rugby, the group that represents the 12 Premiership clubs, is also setting up a department to ensure no one spends more on player wages than they are allowed to.

The current cap is €3 million, but a series of allowances, covering aspects such as large squad sizes and injuries, can take the threshold up to €4.5 million.

The Premier Rugby board will later this month vote on a proposal to abolish the allowances and set a figure of €5.3 million to cover everything.