The former Barcelona, Chelsea and Lazio forward had been without a club since leaving Lazio at the end of June and confirmed his decision through social media.
“I feel that it is the moment. The moment to take a step forward and begin a new stage in my life,” Pedro wrote.
“I am leaving proud to have lived my dream and for all the people who were by my side to make it a reality. Thank you, football, for making me so happy.”
Pedro retires as one of the most decorated Spanish players of his generation.
He won the 2010 World Cup and Euro 2012 with Spain, while his club career included three Champions League triumphs with Barcelona and a Premier League title with Chelsea.
His honours also include five La Liga titles, three European Super Cups, a Europa League, two Club World Cups, an FA Cup, three Copa del Rey trophies and four Spanish Super Cups.
The Tenerife-born forward made 841 official appearances across his club and international career and scored more than 200 goals.
Even towards the end of his career, Pedro remained a productive player. He scored five times for Lazio last season after registering 14 goals during the previous campaign.
His retirement leaves only four members of Spain’s 2010 World Cup-winning squad still active: Raúl Albiol, Sergio Ramos, Juan Mata and Javi Martínez. All four are currently without clubs.
Pedro reflected on his extraordinary journey in his retirement message, remembering his beginnings in Tenerife before becoming part of Barcelona’s most successful era.
“Being part of the best Barça in history was a privilege. We won everything and amazed the world,” he wrote.
He also recalled becoming a World Cup winner and starting the final against the Netherlands in Johannesburg before describing what his spells in England and Italy meant to him.
“London taught me to start from zero, to discover another culture and to grow as a person. In Italy, Italy touched my heart.”
Pedro thanked his former teammates, clubs, coaches, supporters, family and friends before bringing his playing career to a close.
“I feel that it is the moment. Thank you to my teammates, the best thing has not been the titles, it has been you,” he wrote.
“Thank you to the clubs that opened their doors to me. Thank you to the coaches who trusted me. Thank you to the fans for so much affection.”
He finished with a final message to the sport that shaped his life.
“And thank you to my children, my family and my friends. Thank you, football, for making me so happy.”