The 34-year-old said he made his decision to quit after recent discussions with new France coach Guy Noves.
"We arrived at the same conclusions," Dusautoir told the French newspaper L'Equipe.
"If I had tried to continue, forcing to do, I would have shown more vanity than anything else. In fact, I believe that this is the wisest decision."
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A tireless flanker known for his legendary tackling and deft ball-handling skills, Dusautoir made his test debut in 2006 and played a total of 80 internationals.
His last appearance was in the World Cup quarter-finals in October, where France suffered a record 62-13 loss to the eventual champions New Zealand.
"It was clear that I would not be playing the next World Cup (in Japan in 2019)," he said.
"I've always set myself big goals but this one was not reachable and it was never in my intention to just grab a few more caps."
Born in the Ivory Coast, Dusautoir moved to France when he was 10 and did not start playing rugby until he was 16 because his mother thought the sport was too rough for her son.
He made his test debut nine years ago, against Romania, and often saved his best performances for the World Cup.
He made 38 tackles and scored a try in France's shock win over New Zealand in the 2007 quarter-finals. Four years later, Dusautoir scored France's only try in the final, won 8-7 by New Zealand.
Despite being on the losing team, he was named man of the match and later World Rugby's Player of the Year.
Dusautoir was appointed France captain in 2009 and led his team 56 times, a record for his country. Under his guidance France won 26 tests and lost 28.
"My personality has always been to give the maximum for France ... before thinking about me," he said.
"Although I am a proud and ambitious (man), I think being an honest person and it would not have corresponded to what I am and how I led my career."
(Reporting by Greg Stutchbury and Julien Pretot; Editing by Mark Lamport-Stokes and Julian Linden)
