Quiz: Who is Ballack and why is he in the news today?
Having turned 36 at the end of last month, Ballack has been without a team after his two-year deal at Bundesliga side Bayer Leverkusen expired in June.
Since leaving Leverkusen, Ballack had been reported to be negotiating with clubs in north America's MSL and Australia's A-League, but has decided to hang up his boots.
"At 36 years of age, I can look back on a long and wonderful time in professional football, which I could never have dreamed of as a child," he said in a statement.
"It was a privilege to have worked with world-class coaches and fantastic players.