The 32-year-old announced the news to his Wolverhampton Wanderers teammates, before a training session at Compton on Tuesday morning.
Ikeme took the decision, after consulting with medical experts, following his 12-month battle with acute leukaemia.
Last month, Ikeme announced on Twitter, that he was in complete remission from the disease, after “a tough year and intense chemotherapy”.
The goalkeeper has 10 caps for Nigeria and made 274 career appearances in all competitions, with over 200 of them coming for Wolves.
“After advice from the doctors I have taken the decision to retire. It’s not a sad day for me but one to look back with fondness and joy for being able to live my dream . I just want to thank everyone at @wolves for there support over the years. We have rode the good and bad times together , an I’m great-full to of been apart of the clubs history. I’m looking forward to catching up with everyone again soon and being back around the club and city !! Thank You!!! �◼️❤️” he wrote on his Instagram page.