The 36-year-old former Chelsea goalkeeper who joined Arsenal in the summer of 2015 made the announcement on Twitter.
“Having played 15 years in the Premier League and won every single trophy possible, I feel like I have achieved everything I set out to achieve,” he said.
“I will continue to work hard at Arsenal to hopefully win one more trophy this season.”
Cech, who started his career at Viktoria Plzen in 1999, said 20 years is enough time to be a professional footballer.
He said: “This is my 20th season as a professional player and it has been 20 years since I signed my first professional contract, so it feels like the right time to announce that I will retire.
“I am looking forward to seeing what life holds for me off the pitch.”
Cech was signed by Chelsea from Rennes in 2004 and he spent 11 years with the Blues.
After losing his place to Thibaut Courtois, the former Czech Republic international who wears a protective headgear due to fractured skull joined Arsenal and helped the Gunners to an FA Cup triumph in 2017.
However, the arrival of Bernd Leno at Arsenal has restricted his appearances, prompting his decision to retire.
Arsenal have thanked the veteran shot-stopper for his service to the club.
“For your consummate professionalism, for being the perfect role model, for the 50 clean sheets, for your honesty, your integrity and for your inspiring work with the Arsenal Foundation, we want to say – thank you Petr Cech,” the statement read.
Petr Cech won 13 trophies with Chelsea, including one Champions League and four English Premier League (EPL) titles.
He also set a club record of 228 clean sheets in all competitions with the Stamford Bridge club.