The midfielder, who turned 38 earlier this month, was reportedly offered a new one-year-contract by Paris Saint-Germain but has chosen to end a 20-year football career.
He will quit at the end of the season, with his final game away to Lorient on May 26.
He said in a statement: "I'm thankful to PSG for giving me the opportunity to continue but I feel now is the right time to finish my career, playing at the highest level."
He won 115 England caps, placing him second all-time behind Peter Shilton, scoring 17 goals and playing at three World Cups.
Beckham added: "If you had told me as a young boy, I would have played for and won trophies with my boyhood club Manchester United, proudly captained and played for my country over one hundred times and lined up for some of the biggest clubs in the world, I would have told you it was a fantasy. I'm fortunate to have realized those dreams.
"To this day, one of my proudest achievements is captaining my country.
"I knew every time I wore the Three Lions shirt, I was not only following in a long line of great players, I was also representing every fan that cared passionately about their country.
"I'm honored to represent England both on and off the pitch... I want to thank all my team-mates, the great managers that I had the pleasure of learning from. I also want to thank the fans who have all supported me and given me the strength to succeed."
PSG wrapped up the Ligue 1 title on Sunday with a 1-0 win at Lyon - Beckham has played 13 times for the French team since joining on January 31.
The London-born Beckham started his career at Manchester United, the club he supported as a boy, making his first team appearance at the age of 17 in 1992.
His trade-mark free kicks and pin-point crosses established him as a key player, while his good looks made him a pin-up for teenage girls and later his marriage to former Spice Girls band member Victoria Adams established him as an off-field celebrity.
While his commercial appeal kept growing and his friendships with Hollywood A listers grew, his main passion of football - and in particular England - held firm.
After a decade at Old Trafford, where he won six Premier League titles, he left for a four-year spell at Real Madrid where he won La Liga in his final season.
He then crossed the Atlantic in 2007 to become the biggest import in the United States, joining LA Galaxy with a mission to raise the profile of the sport in the country.
He won the MLS championship twice with the Galaxy before moving to Paris in January for what turned out to be his last hurrah.
There he demonstrated one of his other sides as his salary was paid to a children's charity in the French capital.