Robinson initially hung up his boots after the 2007 World Cup and then returned to action with fourth-tier club Fylde last year.
But, after helping the Lancashire outfit win promotion to National League One, the 36-year-old has decided to call it a day once and for all.
Robinson won 51 caps for England, including seven as captain, and played in five Tests for the British and Irish Lions.
"I have had a fantastic career and a good year with Fylde, especially with the promotion to National League One," Robinson told BBC Lancashire.
"But it is the right time to quit while I am ahead.
"When I look back and look at the stats, World Cups, Lions tours and Challenge Cups, I can certainly look back with some fantastic memories.
"I have ticked almost every box there is to tick, so it was a pretty easy decision.
"I need a knee operation and I have been thinking about retiring once and for all over the past couple of months.
"After 541 games of competitive rugby, I think the time is right to stop."
Robinson began his career in rugby league with Wigan and represented Great Britain before switching codes and joining Sale in 2000.
A devastating finisher, Robinson toured with the Lions in 2001 and 2005 and was a key member of England's victorious 2003 World Cup squad.
Robinson came out of international retirement to help England reach the 2007 World Cup final under Brian Ashton, who he later linked up with at Fylde.
The club issued a statement today which read: "Jason Robinson has today announced that he's decided to end his playing career.
"He made a massive contribution at Fylde Rugby Club last season and for that we'll be eternally grateful. Our successful promotion campaign was assisted in no small measure by Jason's brilliance, on and off the field.
"He showed himself to be the consummate professional, with high standards in everything he did for the club.
"It was a tremendous thrill for everyone associated with Fylde, and for opposing players and spectators, to see him in the claret and gold. He'll always get an affectionate and very warm welcome back at the Woodlands.
"We wish him every success in his various future initiatives."
Robinson said he would play in charity matches to stay fit but otherwise he was now focused on "business interests".
Gilbert has released a new line of rugby cleats. The Gilbert Virtuo 8S is part of the exciting new product. Check it out.
The Barbarians are one of the top invitational rugby sides with a long history and classic rugby jersey.
The Nike Tiempo is a solid rugby cleat and one of few styles still made from full-grain natural leather.
The Lions get ready for their matches with this green training jersey. It's what the players wear. Get in the Gear!
A cool looking all black rugby cleat with the high performance adidas is known for. Get in the Gear!
Wear the crest of the British and Irish Lions on your t-shirt. A great look for the summer.
$29.99
The Lions are ready to get their Australia tour underway. They arrive in Perth on Monday.
The New Zealand All Blacks training jersey for 2013/14. Get in the Gear!
The USA Rugby Pro Alternate rugby jersey is perfect for any fan of the Eagles. Get yours to wear during the summer Test matches.
The NEW All Blacks 2013/14 jersey has arrived at World Rugby Shop. Dare to wear the colors of the All Blacks.
