The 35-year-old, who started on the France team that won the World Cup final in Russia in 2018, had been omitted from Inter Miami's squad for this season.
Matuidi won Ligue 1 with Paris Saint-Germain and Serie A with Juventus after spending time with Saint-Etienne and Toulouse.
He made 84 international appearances, scoring nine times before his final Les Bleus game in 2019.
"I've decided to end my career as a professional footballer," he said in a video on YouTube.
"I had the chance to play for the biggest European clubs, wear the France shirt, give my family a buzz, live my passion and they are images that will stay with me," he added.
Matuidi was present last Sunday as France lost in the final of this year's World Cup to Argentina in Qatar.