Lloris had been a mainstay of the France national team since making his debut in 2008.
The 36-year-old played at four World Cups and three European championships.
Lloris won a record 145 caps for the France national team and captained the side to win the 2018 World Cup in Russia and UEFA Nations League in 2021.
Lloris was also in goal when France lost the EURO 2016 final to Portugal on home soil as well as last month's World Cup final defeat to Argentina on penalties.
The Tottenham Hotspurs goalkeeper has hand picked AC Milan stopper Mike Maignan as his preferred successor.
"There comes a time when you have to know how to hand over the reins," he told French newspaper L'Equipe in an interview.
"I have always said over and over again that the French team doesn't belong to anyone, and we all have to make sure that's the case, me first.
"I think that the team is ready to go on. There is also a goalkeeper who is ready [Mike Maignan]."
"I prefer to go out at my peak than wait for a downturn," he added. "There is also a family choice, I feel the need to spend more time with my wife and children."
Reacting to the news, France manager Didier Deschamps said: "Hugo is still at his best and I have, we have, to respect his decision even if he still had his place in our team as we saw at the World Cup."
"It's a great servant of the France national team retiring and I want to praise his incredible international career. Beyond all the records he beat, beyond the essential role he had in all our success, he is a remarkable person on the human side.
"It was a joy and an honour to be his coach. I wish every manager to have a player like him in their squad. I wish all the happiness. A huge thank you Hugo for having represented your country so well."
