"It pains me greatly, but I believe my moment has passed," said the 35-year-old following the draw with Panama.
Arango had faced heavy criticism from the Venezuelan media for his recent performance with the national team and the attacking midfielder did not score at all during the recent Copa America in Chile.
"I made the decision in the months after the Copa America," said a teary Arango, who had played in Spain and Germany before joining Mexican club Xolos last year.
"I did not make the decision before then because I thought I could give a little more. But during the Copa America I felt it was the end."
He played his first game for Venezuela in 2000 against Ecuador and since then has played 129 games.
His greatest achievement was leading the team to fourth place in the Copa America in Argentina in 2011.
"To speak of Arango is to speak of the best player that Venezuelan football has had," said Noel Sanvicente, the team's coach.
(Writing by Brian Ellsworth; Editing by Greg Stutchbury)
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