The decision follows discussions with new Dutch coach Ronald Koeman, who went to see him in Qatar, the Dutch football association KNVB said in a statement.
"Wesley is one of the best Dutch internationals in recent years, an amazing player with a great attitude. But I want to build a new team and therefore have to make choices," Koeman said in the statement.
The 33-year-old Sneijder said he knew his international career would be in jeopardy when he left Nice in January to play at Al Gharafa in Qatar.
"On top of that I understand that Koeman wants to start a new era with newer, younger players. We spoke about this openly in a friendly discussion and I respect his decision," Sneijder said.
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The KNVB said they would now discuss with Sneijder a possible role for him in the national team structures once he stopped playing and had achieved the necessary coaching qualifications.
Sneijder last June set a new record for most caps by a Dutch international when he played for a 131st time and his 133rd and last cap came in November's 3-0 away win against Romania in a friendly.
He made his debut in 2003 and was a World Cup runner-up in South Africa in 2010.
(Reporting by Mark Gleeson; Editing by Sudipto Ganguly)
