The 33-year-old who began his career at Liverpool before spells at Real Madrid, Newcastle United, Manchester United and current club Stoke City, announced the decision on his website.
A statement on the site read: "It is with an immense amount of pride that I am announcing my intention to retire from Professional Football at the end of this season.
"Having progressed through the ranks at Liverpool to make my first team debut at 17, before embarking upon spells at Real Madrid, Newcastle United, Manchester United and Stoke City, not to mention representing my country on 89 occasions, I now feel it is the right time to bring the curtain down on my career.
"I have been very fortunate in that my career has taken me on a journey that like many young players starting out, I could only have dreamt of.
"None of this would have been possible without the tremendous support I have received from managers, coaches, fellow players, back room staff, the supporters and my own personal sponsors. I would like to thank each and every one for the huge role they have played in helping me reach the top of my profession.
"Most of all though, I would like to thank my family. To my beautiful wife Louise, for her continued love and support through the many ups and downs in my career and for affording me the most precious gift of all, our children.
"To my Mum who has always taken the brunt of my frustrations yet continues to keep our family so tight-knit, a trait that has formed the foundations of my own success. Her dedication to me and my brothers and sisters is immeasurable. I'd like to thank Terry, Andy, Karen and Lesley for being so understanding and creating the perfect environment to grow up in.
"Last but not least, my Dad. We did it my old mate! From those freezing local parks to terrorising the best defenders in the World on the biggest stages of all. I couldn't have done it without you."
Owen was a prodigious talent as a schoolboy and signed for Liverpool when he was 12 before turning professional at Anfield five years later.
He scored on his first-team debut against Wimbledon in 1997 and did not look back, winning the Premier League Golden Boot in his first two full seasons and being voted BBC Sports Personality of the Year in 1998.
In the 2000/01 season, Owen helped Liverpool to a treble of FA Cup, League Cup and UEFA Cup titles and was named European Footballer of the Year - the first Englishman to win the award since Kevin Keegan in 1979.
Liverpool won the League Cup again two years later but they were unable to achieve a first Premier League title and speculation about Owen's future at Anfield grew, particularly when manager Gerard Houllier left in May 2004.
In August of that year Real Madrid got their man when the striker headed to Spain having scored 158 goals for Liverpool at better than a goal every two games.
Injuries had already begun to surface, though, with hamstring problems impacting on his pace, and he had only limited opportunities among the Galacticos at the Bernabeu.
Owen returned to England a year after moving to Spain, joining Newcastle for a club record fee of 16.8million, but injuries increasingly took their toll.
He managed only 79 appearances in four years, scoring 30 goals, with a broken foot and a knee ligament injury sustained on England duty at the 2006 World Cup proving particularly damaging.
A disastrous 2008/09 season culminated in Newcastle being relegated and Owen moved again that summer, joining Manchester United.
Sir Alex Ferguson used him sparingly but there were notable highlights, particularly a very late winner in a 4-3 derby victory over Manchester City in September 2009 and a hat-trick in the Champions League against Wolfsburg.
The 2010/11 season brought Owen his first Premier League title, with the striker making 17 appearances and scoring five goals.
He was released at the end of last season and was without a club during the summer before joining Stoke in September, but he has made only seven appearances for the Potters, scoring once against Swansea in January.
His final cap for England came in a 1-0 defeat by France in March 2008 while his last goals for his country were a brace against Russia the previous September.
As well as that goal against Argentina in St Etienne, Owen was also the hero of one of England's greatest recent wins, scoring a hat-trick in the 5-1 win over Germany in Munich in September 2001.
The Football Association paid tribute to Owen, with Club England managing director Adrian Bevington saying on the FA website: "Michael Owen enjoyed a tremendous career with England, playing at every level.
"He has always conducted himself with outstanding professionalism when on England duty and performed at the highest level, scoring important goals at major tournaments.
"We are already in talks with Michael about how he can share his international experience with our younger players in the future in an ambassadorial role."
Lineker added on Twitter: "Michael Owen to retire at the end of the season. One of England's greatest goal scorers, and a good bloke too. Wish him well."
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