"It's definitely over," Neuville said of his 18-year career as a professional footballer. "I thought about [retiring] for some time, but this has not happened as I hoped. I hoped to play more."
Neuville - capped 69 times for Germany - moved to Bielefeld in the summer after six years at Borussia Monchengladbach.
The Swiss-born striker had previously spent five years at Bayer Leverkusen where, alongside former Germany captain Michael Ballack, he finished runner-up to Real Madrid in the 2002 Champions League final.
He participated in two World Cup finals for the German national team - finishing in second-place in 2002 and a third-place in 2006 - and helped Germany to a second-place finish in Euro 2008.