The 36-year-old will remain at the club after hanging up his boots, having agreed to become part of manager David Wagner's backroom staff.
"Dean is a winner. He demands 100% effort from himself and everyone around him, he commands respect and is top quality in everything he does," Wagner told the official Huddersfield website.
Whitehead has made more than 600 appearances during his playing career, which has also included stints at Oxford United, Sunderland, Stoke City and Middlesbrough.
The midfielder's final game for Huddersfield will be this Sunday's Premier League home clash with Arsenal.