The 34-year-old, who has played for numerous clubs, including Newcastle United, Liverpool and Manchester City, told Wales Online that he could no longer handle the physical demands of playing at the top level.
"It's been on my mind to finish playing for the last couple of years, but this time I've had to make a decision. I've had to listen to my body," said Bellamy.
"Usually, whenever I went into a new season I set myself a specific challenge. For last couple of years, that challenge was just to be able to get out there on the pitch and be able to play."
Bellamy, who has revealed that he has received offers from a number of English clubs, as well as in the MLS, added: "The time has come to stand aside and say enough."
The Welshman played for 10 clubs during his senior career, which ended with a two-year stint at his boyhood club Cardiff, where he scored in his final game on May 11 in a 2-1 defeat to Chelsea.
The forward, who represented Team Great Britain at the London 2012 Olympic Games, has revealed that he plans to move into management over the next two years.