The 40-year-old, who has spent the past three years at Brighton, began his career at boyhood club Leeds and has played 24 seasons in the Premier League.
Milner broke the record for the most Premier League appearances while playing for Brighton against Brentford in February, and ends his career with a total of 658.
"After 24 seasons in the Premier League, it feels like the right time to bring an end to my playing career," Milner said in a statement on Instagram.
"From making my debut for Leeds, who I supported growing up, at the age of 16 and becoming the Premier League's youngest scorer, I could never have dreamed of the journey I've been on, right through to not being able to lift my foot last year and then coming back to be part of Brighton qualifying for Europe for the second time in their history at the age of 40."
Milner began his career with Leeds in 2002, becoming the Premier League's youngest goalscorer aged 16 years and 356 days.
Spells at Newcastle and Aston Villa followed before he joined Manchester City in 2010, where he lifted two Premier League titles, an FA Cup and League Cup.
A move to Liverpool in 2015 led to Milner securing another Premier League crown along with an FA Cup and League Cup and he was part of the Reds' Champions League-winning side in 2019.
After eight seasons at Anfield, the midfielder joined Brighton on a free transfer in June 2023 and he surpassed Gareth Barry's previous Premier League appearance record of 653 earlier this year.
On the international stage, Milner won 61 caps for England and was in the squad for two European Championships and two World Cups. He made 964 appearances for club and country overall.
Milner added: "To have gone on to represent Newcastle, Aston Villa, Manchester City, Liverpool and Brighton — and not forgetting a memorable month at Swindon — has been an incredible privilege."
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