Matuidi has not played competitively since the end of the 2021 Major League Soccer season.
He is still contracted to Inter Miami until the end of this year but has announced he will not be making a return to the field.
Matuidi was an integral part of the France side that won the FIFA World Cup in Russia in 2018.
The midfield enforcer won 84 caps for Les Bleus, scoring nine goals.
Matuidi turned out for clubs including Troyes, Saint Etienne, Paris Saint Germain and Juventus.
Matuidi won five Ligue 1 titles with PSG and three Serie A trophies with Juventus before winding down his career in the MLS.
In a statement posted on his Instagram, Matuidi wrote: 'Football, I loved you so much. Football, you have given me so much, but it's time to stop. When I look back on this long journey, my eyes are full of stars.
"I fulfilled my dreams as a child, my dreams as a man. It's a tight throat but I'm proud to turn this page today.
"Thank you to the people who allowed me to be part of this amazing journey. Thanks to my teammates who became my friends, my brothers.
"Thank you coaches, managers, high level players, and also amateur football, volunteers. Thank you to my family who always supported me.
"Finally, thank you to you, who have always given me the strength and extra soul to go higher."