The Football Association of Wales made the announcement late on Sunday evening that the 30-year-old had decided to call time on his international career.
Davies made his Wales debut in 2001 and gained 58 caps. The manager of Wales, John Toshack, has taken a blow from the news as it comes just before the start of Euro 2012 qualifying next month.
Only last Friday did Toshack speak of the importance of his senior players such as Davies as well as Craig Bellamy and James Collins to the international team's hopes of qualification.