The 35-year-old Olympiakos defender, whose current contract with the Greek club runs until June 2016, called a press conference on Friday to make his announcement, citing “personal reasons”.
"It's a very important moment in my career. Today, I've taken the official decision to bring an end to my professional career. It's solely due to personal reasons," he told reporters.
"I've always played at a good level. I thank the president for his support. I'm proud to have worn the Olympiakos shirt during my time here and I'll always support them.
"I want to say thank you to the coaches I've had, to the medical staff who helped me, because without them I wouldn't be here now."
The French centre-back had previously spent six years at Spanish giants Barcelona, before undergoing a liver transplant in 2012.
He then spent a year at French club Monaco, before joining Olympiakos at the start of this season, featuring inconsistently in their League campaign, yet playing in all six Champions League fixtures as the Greeks finished third in their group.
Abidal added that he may join his former Spanish club in a coaching role, but is yet to confirm the position.
"I have an offer from Barcelona," he added. "But I will make a decision later. I first want to rest and spend time with my family."