He made 115 appearances for England and 394 for Man Utd, winning six Premier League titles and the Champions League.
"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 said.
"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 100 times and lined up for some of the biggest clubs in the world, I would have told you it was a fantasy," he said.
"I'm fortunate to have realised those dreams."