In total, Murphy, who made his 322nd appearance for the Tigers with whom he has won a host of silverware in England and in Europe, won 74 Ireland caps and made his last appearance at the 2011 World Cup.
"Every player wants to play on forever but, unfortunately, your body just doesn't let you do that," said Murphy.
"It's with a very heavy heart that I have had to accept defeat and announce that I will retire from playing this season.
"I have been very lucky with Leicester to win a fair amount of silverware and I am looking forward to looking back on that at some stage - it still hasn't really sunk in.
"I have a lot of good memories that I will be able to look back on with great affection. The best part of playing is the players, the mates that I have made through rugby. I'm very lucky that some of my best friends in life are guys that I have met through rugby and played with and played against."