Lambert has enjoyed a long career in the game, playing 701 times and scoring 241 goals, including 11 caps and three strikes for the England national team.
The 35-year-old has since made the decision to hang up his boots, saying in a statement: "I feel lucky to have been involved in this sport for as long as I have.
"I have had some ups and downs in my career but to have represented clubs like Southampton, Liverpool and playing for my country in a World Cup were beyond my wildest dreams.
"Playing and scoring for England is probably my proudest professional moment and I will look back at every aspect of how I got there with fond memories.
"I would like to thank the fans of all of the clubs I played for but especially at Southampton where I enjoyed my best years as a footballer and had a special relationship with everyone connected to the club.
"I will be taking a break for a while to spend some quality time with my family just being a husband and father. In the future I hope to give back as best I can to the game that has given me so much."