Wozniacki, 29, made the announcement In a lengthy post on Instagram, on Friday.
Wozniacki who is currently ranked 37th in the world and last competed in the China Open in October, was diagnosed with rheumatoid arthritis in 2018.
However, the 2018 Australian Open champion says her retirement has nothing to do with her health.
She revealed that she plans to focus on her life away from tennis, including plans to start a family with her New York Knicks player husband David Lee.
“I’ve always told myself, when the time comes, that there are things away from tennis that I want to do more, then it’s time to be done. In recent months, I’ve realised that there is a lot more in life that I’d like to accomplish off the court,” she wrote.
“I’ve played professionally since I was 15 years old and in that time I’ve experienced an amazing first chapter of my life… [and] I’ve accomplished everything I could ever dream of on the court.”
“Getting married to David was one of those goals and starting a family with him while continuing to travel the world and helping raise awareness about rheumatoid arthritis are all passions of mine moving forward.”
Signing off her statement, Wozniacki said: “I want to thank with all my heart, the fans, my friends, my sponsors, my team, especially my father as my coach, my husband, and my family for decades of support… without all of you I could have never have done this.”
Wozniacki’s career includes 30 WTA singles titles, reaching world number one in 2010, a WTA Finals victory and competing in three Olympics.
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