Haye's last fight was his defeat to Wladimir Klitschko in July, but Hatton has said that the Brit will regret ending his career on a loss.
"David Haye should fight on to secure his legacy," Hatton told The Sun. "He will be the first to admit he is better than his last performance against Wladimir Klitschko. And I have a feeling in my water he might yet give it one last go.
"Look at my career. I had a few ding-dongs and a few heavy defeats. I had to drag my arse off the floor and come back again but David has not had that gruelling a career. His last fight is how most people will remember him, just as people remember me for mine - getting knocked out by Manny Pacquiao.
"For David, it was the night he came second to Klitschko and the manner of his defeat. That is why I believe Haye should fight on, to set the record straight - but I totally respect the decision he has come to."
Haye has won 25 of his 27 professional fights, with 23 of those coming by knockout.