The 24-year-old, who made just 10 appearances for the Championship outfit, underwent a period of rehabilitation on a torn lumbar disc in his spine, but has been unable to recover.
"I consider myself incredibly lucky to have played professional rugby, it is the best job in the world," he told reporters at a press conference.
"I will always wish I was still out there on the pitch, but I consider myself fortunate to have experienced it even for a short time. I now look forward to finishing my degree provided by the RPA and working closely alongside them in the next phase of my life.
"I'd like to thank everyone who has contributed to my career, from playing on Sunday mornings at my local club as a junior right through to playing in the Premiership. The hard work from the medical staff at the Falcons, also my family and friends for supporting me through the injury and retirement."
Frazier has also played for Harlequins.