When he retired in 2001, Hagi was one of the most popular players in both Turkey and Romania. Hagi drew praise from the Galatasaray supporters for his performances during his time with the club, who adopted the chant "I Love You Hagi" in his honour.
Hagi retired from professional football in 2001, at the age of 36; that year, he was given a send-off in a testimonial game on 24 April, called "Gala Hagi," featuring a team of Romanian All-Stars against a team of international All-Stars. At the time of his retirement, his 124 caps for his country were a national record, which has since been surpassed by Dorinel Munteanu. He currently still holds the record of most goals scored for the Romanian national team, alongside Adrian Mutu, with 35.
In 2001, Hagi was named the manager of the Romania national team, replacing Ladislau Bölöni, who left the squad to coach Sporting Clube de Portugal. After failing to qualify the team for the World Cup, however, Hagi was sacked. His only notable achievement during the six months as Romania's manager was the win in Budapest against Hungary.