"It is without a doubt the most difficult decision I have had to make in my career, my heart says yes, my body says no," Robben told the Telegraaf.
His contract at Bayern had expired on June 30.
Robben played 96 international matches for the Netherlands, scoring 37 goals, starring in the team which reached the 2010 World Cup final and finished third four years later.
Leaving Bayern star Robben might consider retirement from football
He won two Premier League titles under Jose Mourinho at Chelsea in 2005 and 2006, before claiming a La Liga winner's medal with Real Madrid.
But Robben, a Groningen youth product, will be best remembered for his time at Bayern. He helped the Bavarians to eight Bundesliga crowns, five German Cups and the 2013 Champions League title, scoring 144 goals in 309 appearances for the club.
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There had been speculation Robben would continue playing, with a possible return to England mooted, but instead he has decided to hang up his boots.
Robben had already retired from international football after the Netherlands failed to qualify for the 2018 World Cup.
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