The 32-year-old Corretja, a native of Spain, last won a tournament in 2002 at the Generali Open in Kitzbuhel, Austria. He has been hampered in recent years by an eye injury.
"I am retiring with the tranquility that I have given 100 per cent all the time," Corretja said. "I am very proud of what I have achieved, and I am happy and content with my tennis career."
Corretja, one of the most popular players on the men's tour, finishes with 17 singles titles and three doubles titles.
He was a finalist at the French Open twice, helped Spain win its first ever Davis Cup title over Australia in 2000, and had a career singles record of 438-281.
In 1996 and 1998, he was voted by his peers as the winner of the Stefan Edberg Sportsmanship Award.