The 33-year-old striker was left out of Volker Finke's latest squad and the midfielder will now take on the armband for the future.
The news was expected after the 33-year-old was not included in Volker Finke's new-look Cameroon squad that was announced on Saturday.
And it was confirmed three days later that Eto'o had lost the leadership role in an official statement from the Cameroon Football Federation (FECAFOOT), which said the decision had been made by the sports ministry.
It read: "Stephane M'Bia [is the] senior national team captain.
"[He] will be respectively assisted by Eric Maxim Choupo-Moting and Vincent Aboubakar. M'Bia, Choupo-Moting and Aboubakar replace Samuel Eto'o, Nicolas N'Koulou and Eyong Enoh."
Eto'o played just once at this year's World Cup, in which Cameroon lost all three of their games. Cameroon's campaign was also plagued by a bonus row and an alleged match-fixing scandal.
Eto'o is still a free agent after leaving Premier League outfit Chelsea, though Goal UK reports Everton is close to agreeing to a deal for the striker.
Cameroon's next match marks the start of its qualifying for the 2015 Africa Cup of Nations. Finke's side plays Congo DR on September 4.