The 36-year-old, who has featured 463 times for the Red Devils since joining from Tottenham Hotspur in 2006, has been offered the chance to return to the club in a coaching capacity.
Carrick has been restricted to just four appearances in all competitions this term due to an irregular heart rhythm, which he was diagnosed with in September.
United boss Jose Mourinho suggested at the beginning of the year that the 34-cap England international would likely bring the curtain down on his career at the end of the campaign and, speaking to reporters ahead of Tuesday's meeting with Sevilla, Carrick confirmed the news.
"There comes a time when your body tells you it is time to stop. That is where I am at," he said. "After the heart issue, I had two or three days thinking 'am I going to carry on?' I got back fit and wanted to finish on my own terms.
"I need to keep myself fit and ready. Hopefully I can get some game time and I am still enjoying training. I am trying to help a lot more because I understand where I am at."
Former West Ham United and Tottenham midfielder Carrick has won five Premier League titles and the Champions League during his time with Man United, and was handed the captain's armband last year following Wayne Rooney's departure.