Recoba, who represented Inter for 10 seasons, winning two Serie A titles and the UEFA Cup, returned to his hometown club, Nacional of Montevideo, in 2011.
Having won two Primera Division titles with him in the team, Nacional announced Recoba was finally hanging up his boots in a tribute posted on their official website.
The left-footed attacking midfielder earned 69 caps with Uruguay and played at the 2002 World Cup.
He was also in the side that faced Australia when John Aloisi scored the historic penalty that fired the Socceroos into the 2006 FIFA World Cup.
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