Murphy has been capped 72 times by Ireland during a 12-year international career, with the 34-year-old also adding a further two caps for the British and Irish Lions in 2005.
However his appearance against Russia at the 2011 World Cup will now be his last in the green jersey, with Murphy opting to focus on his club career after being overlooked for the tour to New Zealand.
Ireland coach Declan Kidney had named an initial 29-man squad for the tour, with three spots - two in the forwards and one in the backs - set to be announced at a later date.
Murphy, though, will not be boarding the plane, with the Tigers full-back telling the Leicester Mercury: "I am not in and you know when it's time to hang up your boots at any level.
"I have had some tremendous memories with the squad but it is time for some young lads to come in and prepare for the next World Cup.
"I haven't spoken to him (Declan) about it, but I am going to give him a shout. That's it."
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