Matic was due to be named in the Serbia squad for Nations League games against Russia and Turkey next month but the former Benfica midfielder has made it clear he is stepping down for the next generation of Serbian footballers to step up.
Serbia are still in with a shout of qualifying for the rescheduled European Championships next summer as they take on Norway in the play-off semi-finals in October. The winner of that game will meet Scotland or Israel for a place in next summer’s tournament.
Matic made his debut for the Serbia national team in 2008 and went on to make 48 appearances, scoring two goals and was part of their travelling party for the 2018 FIFA World Cup in Russia.
FSS sports director Vladimir Matijasevic said: "Other than saying it was time for younger players to take over, Matic did not state any other specific reasons for quitting.
"We respect his decision. He is 32 years old and he's had an exerting club season. European club football is demanding and hence we are aware that we'll have to inject fresh blood into the national team.
"We've got several players who are over the hill and we realise that some of them may call time on their international careers in the next year or two."
Matic will now concentrate on his club football in Manchester, where he recently signed a new three-year contract.