The Swansea City midfielder is the second elder statesman of Wales' Qatar 2022 World Cup squad to quit international football after Gareth Bale also retired last month.
Allen made his Wales debut in 2009 and went on to make 74 appearances for his country, scoring two goals.
The former Liverpool midfielder played key roles in Wales qualifying for three major international tournaments; EURO 2016 and EURO 2020 as well as the Qatar 2022 World Cup.
He was named in the team of the tournament as Wales reached the semi-finals of EURO 2016.
"Playing for Wales has been a great passion and love in my life," Allen said in a statement released by the Football Association of Wales.
"I have been extremely fortunate. I've shared this journey with incredible people - my family, team-mates, staff and fans have made it special and I'm hugely grateful to you all.
"Our nation's support is inspiring and it has given me immense pride to wear the shirt… so many unforgettable experiences.
"Unfortunately, time and injuries take their toll and so it's time for me to make way for our next generation. The future of Welsh football is bright."
