The midfielder, who most recently played for Brighton, made the announcement after 24 seasons at the top level, during which he became the Premier League's record appearance holder with 658 matches.
In a message shared on Instagram media, Milner reflected on his long career with pride and gratitude.
"After 24 seasons in the Premier League, it feels like the right time to bring an end to my playing career," he said. "I'm incredibly proud of the journey I've been on, and grateful to every club, teammate and supporter who has been part of it."
He added: "To finish my career at Brighton was a real honour. Being part of this group, and contributing in any way I could to another historic chapter for the club is something I will always cherish."
Brighton praised Milner's influence since he arrived in 2023 from Liverpool, highlighting his leadership, professionalism and experience both on and off the pitch. During his time at the club, he made 46 appearances and played a key role in their progress into European competition.
Milner's career began at just 16 with Leeds United, before he went on to represent Newcastle United, Aston Villa, Manchester City, and Liverpool. He also earned 61 caps for England, featuring in two World Cups and two European Championships.
Across his career, Milner won multiple Premier League titles, domestic cups and European honours, earning a reputation as one of the game's most reliable and versatile professionals.
Brighton said in a statement: "Everyone at the club would like to thank James for his outstanding service to football and to Brighton & Hove Albion, and we wish him and his family all the very best for the future."
