The 34-year-old club skipper has been handed the job following the departure of Stevie Farrell, with Blues striker Darryl Duffy as assistant and defender Scott Robertson also taking on a coaching role.
Hamill will remain registered as a player, but admitted the demands of his new role mean his time on the pitch is over.
He said: "You never say never but I just want to focus solely on the managerial side.
"I've spoken to a few managers and you either do one or the other for me. If you make a mistake on a Saturday how do you give yourself into trouble?
"I just don't think it's fair on the boys for me to be playing and involved in the dressing room. You're either a manager or a player.
"I obviously gave Stranraer the option, just in case we have massive injuries. But 99 per cent I'll never play again.
"I was a wee bit gutted but getting the job this is my next stage.
"People may retire thinking they maybe can't do it any more but I know for a fact that I could have still done it.
"But this kind of opportunity doesn't come about too often. I just want to come away from the football side and concentrate solely on the job in hand."
It's job which is a hugely exciting prospect for Hamill and his preparation began even before his interview.
"Duff, Robbo and I were constantly phoning each other, meeting each other for coffees and running through different scenarios, speaking to people," he admitted.
"Duff and Robbo are probably fed up with me phoning every two minutes asking 'what do you think of this?'
"I did my B licence about eight years ago and always kept on top of it, just in case something came up. Playing football doesn't last forever and being part of the backroom team and club captain it was a natural progression going down this route.
"It's a great opportunity and I'd just like to say a massive thanks to everybody at Stranraer.
"I've spoken to all the players and they are all on board and just buzzing to get started."
"The hard work has started, things in the background like making sure we've got the right training facilities for next season.
"It's things you don't realise as a player. You just turn up for training and thank 'that's fine' but there's a lot of hard work goes on behind the scenes."
"As we speak we have about 12 players which as this stage is a good number. Obviously we'll be looking to add to it and get maybe 18 or 19 to give you cover for different positions.
"There will be signings in but I'm not panicking and making six signings as of now. I'll slowly chip away at it; we need to make sure they are right for Stranraer."
"Looking back I've played under the likes of Jim Jefferies, Mixu Paatelainen, Kenny Shiels . . . I could name 10 managers I've played for.
"I'll take snippets from every one of them but also try and put my own stamp on it."