The BBC reported the decision has led to media speculation in her native Switzerland that the former world No. 1 will retire for a second time.
She also retired in 2003 because of an ankle problem, and was due to compete in next week's Zurich Open.
"I'm very disappointed that I have to withdraw from the Zurich Open," Hingis told the BBC. "I've done everything I can to be able to compete, but since Key Biscayne (Fla.), I've had problems with my hip which are stopping me from playing any more tournaments this year and even from practicing properly."
For the season, her match record was 16-11 in 13 tournaments, with one title, the Pan Pacific Open in Tokyo in February.
2014: The Year in Music [PHOTOS]