Injury ends Jones' career
The Bristol back row underwent surgery three months ago in an effort to get back to full fitness, but it soon became clear that he could not continue playing.
Jones won 75 caps for Wales, featuring in three Six Nations Grand Slam-winning teams, while he also played in all three Tests for the 2005 British and Irish Lions against New Zealand.
On top of his successful international career, Jones was a key player for Welsh side the Ospreys for several seasons before making a move to Bristol.
"The old cliche of making the decision with a heavy heart is true on this occasion," he said.
"The last few weeks have been emotionally tough for me. I've had to recognise, and come to terms with, the fact that while the mind is still very willing, the body is no longer able to do what I want it to on a rugby pitch.
"After sustaining a shoulder injury in May and subsequently undergoing surgery to repair the damage, it became clear that I could no longer carry on, leaving me with little option other than to call time on what has been an incredible personal journey."
Jones added that rugby would "continue to be a big part of my life".
"For now, I look forward to enjoying the Rugby World Cup as a Welsh supporter, knowing from my own personal experiences in 2011 that it is the biggest spectacle in the sport."
Newport-born Jones, who was once a goalkeeper on Bristol City's books, took up rugby at the age of 17.
After making his Wales debut against South Africa in 2004, he went on to skipper his country 33 times, a record that was only surpassed by current captain Sam Warburton earlier this year.
Wales head coach Warren Gatland was quick to pay tribute to Jones' dedication to international duty.
"Ryan's career speaks for itself," Gatland said.
"He led his country 33 times, amassed 75 caps for Wales and won four Six Nations titles and three Grand Slams. That is a huge achievement.
"His pride and dedication for the game and his country shone through, and he was a truly great leader. He led from the front and was a role model on and off the pitch.
"It is disappointing he has announced his retirement, but he can look back on his career with pride and I am sure he will succeed in the next chapter of life."
