"After 16 months of unsuccessful rehab it is finally time to call it a day on my rugby career," the 35-year-old said on his official Twitter account on Friday.
Balshaw played 35 tests for England and three for the British and Irish Lions on the tour of Australia in 2001, scoring 13 tries in total.
He went on as a replacement during the 2003 World Cup final victory over Australia in Sydney but suffered a number of injuries during his career.
(Reporting by Josh Reich, editing by Tony Jimenez)
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