The former England captain was player-coach at Gloucester last season but has not been offered a new contract.
The 35-year-old centre, who joined Gloucester from Bath in 2005, won 75 caps for his country.
"It's time to retire," he tweeted. "I have been lucky to play with/against some great players, two great clubs and have had some amazing times."
Mike Tindall Ex-England centre Tindall's decision comes four days after former team-mate and close friend Iain Balshaw became the penultimate member of the 2003 World Cup-winning side to retire.“You have to face the big bad world sometime and now is the right time to do that”
Tindall, who captained England in 2011, played 181 games for Gloucester.
He told the Gloucester Citizen newspaper he could have played for two more years but did not want to turn out for another club.
"International rugby and the Lions are great but club rugby is your bread and butter and dictates where you go in your life," he explained.
"I had to ask myself if I wanted to go and play somewhere else. Can you get emotionally attached to another club? I don't think you can."
He said he could not guarantee a comeback at some stage in the future but added: "I wouldn't have thought I will be back. You have to face the big bad world sometime and now is the right time to do that."
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