The decision though has been met with a mixed response, with many feeling Buckingham has been hard done by.
"I think that's a fair reaction in the first instance and we're obviously gutted for Des," said NZF Chief Executive Andrew Pragnell.
"But we have to put the organisation, the team and the players first and make sure they get the best outcome.
"The 23's and the All Whites are going to have a significant amount of overlapping players, so when people put it in that strategic context, they'll understand that."
Pragnell said New Zealand Football had been in constant contact with Buckingham since the postponement of the Olympics on March 24.
"He's been incredibly professional throughout. It's impossible not to be disappointed and no-one is kidding themselves that you wouldn't be.
"Once the Olympics were postponed, we had to get the lie of the land and understand if there was going to be any other international activity through until the end of Des's contract and it became apparent there wasn't.
"We're gutted for Des but it also presents a pretty opportune piece of strategic alignment. If the Olympics goes ahead, it'll be the first time an Olympic campaign can be embedded in an All Whites World Cup campaign," said Pragnell.
Pragnell's view that the senior and under-23 sides will share several players stands up to scrutiny with Hay a renowned advocate of youth. The first squad he selected as All Whites coach last November included nine under-23 players.
While excited about aligning the under-23 and All Whites campaigns and the benefit that could have for 2022 World Cup qualification, Hay was sympathetic to Buckingham's position.
"If I put myself in Des's shoes as a coach I'd obviously be bitterly disappointed," Hay said.
"It's really tough on him, I feel for him. I think he's done a fantastic job with not just the 23's but the 20's as well, as well as his staff.
"A lot of this is out of peoples' control with a lot of turmoil going on around the world and New Zealand and New Zealand Football are no different from that.
"There's a lot of empathy towards what he's gone through."
Buckingham declined to comment when contacted by the Herald.