Bullard had never fully recovered from rupturing the cruciate ligaments in his knee twice in three years while playing for Fulham and then Hull.
The 33-year-old made just two appearances for League One club Milton Keynes Dons this season and has opted to call an end to his 14-year career after another downbeat assessment from a consultant last week.
"My old knee injury has never allowed me to get back to where I want to be as a football player; it's always hindered me," Bullard said.
"There are a lot of games in this league and I now know my knee won't allow me to play Saturday-Tuesday-Saturday-Tuesday, it's not built for that now.
"I want to be out there playing but at the same time I know my knee won't allow me to play at my best and to keep my place in the team. I'm hindering myself more than I am helping myself for the future.
"In the summer I knew I wanted to give it one last crack and show people what I could do. My head tells me I can do it, but my body tells me, no, Jim, you can't."
London-born Bullard helped Wigan reach the Premier League for the first time in their history in 2005.
He also played a key role in their appearance in the 2006 League Cup final, which ended in defeat against Manchester United, before joining Fulham in a ?2.5 million deal.
But he made only 40 appearances in three years at Fulham due to a knee injury.
A £5 million move to Hull followed in January 2009, but once again he was hit by severe knee problems that left him on the sidelines for nine months.
Source: AFP
Source: AFP