Despite having wished for an A-League swansong, the former Sydney FC and Newcastle Jets star decided to call time on his career after not playing since rupturing his anterior cruciate ligament in December 2014.
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But Carle will still remain involved with the Sky Blues as both a scout for Sydney FC's academy program and by coaching children at Southern Districts.
"After an enjoyable 18 years of being a professional footballer it comes with a very heavy heart to announce my retirement from football," Carle said in a statement.
"Following an ACL operation 18 months ago my knee has unfortunately not healed the way I had hoped.
"The next chapter of my life will be giving back to the game and coaching kids at Southern Districts as well as working with Sydney FC Academy Director Kelly Cross to recognise young talent for Sydney FC’s Academy program.
"I thank both Sydney FC and Southern Districts for these opportunities and keeping me involved in the game I love.
"As much as I will miss the game, I am grateful this horrible injury happened at 33 not 23. I would like to thank the fans throughout my career, it has been an enjoyable ride."
Although Carle was often described an unfulfilled talent, he won 13 caps for Australia, claimed the prestigious Johnny Warren Medal in 2007, played abroad in England, France and the UAE, and made over 100 A-League appearances.
The Sky Blues revealed Carle will start his role with the academy in the coming weeks.