Parker, who had 18 caps for England, played for Fulham last season as the Championship team came close to winning promotion to the top tier but lost to Reading in the play-offs semi-final.
"The decision to retire has not been an easy one for me but having thought long and hard over it, and having discussed it with those closest to me, I believe that now is the right time to move on to the next chapter in my life and career," Parker said in a statement.
Parker also said that an announcement about his future endeavours will be made shortly.
(Reporting by Aditi Prakash in Bengaluru; editing by Sudipto Ganguly)
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