The Frenchman played for 12 clubs during his 17-year career and won 41 caps for his country.
He had been without a team since leaving Ligue 1 side Bastia at the end of last season and confirmed last night that he had hung up his boots.
"The body says stop, now it's over," he told Canal+. "I can't practise high-level football."
His most successful spell in England was with Liverpool between 2004 and 2007, when he won the Champions League and UEFA Super Cup in 2005 and the FA Cup in 2006.