Modano, 41, played 20 seasons with the Minnesota/Dallas NHL franchise, which made him the top selection in the 1988 NHL Entry Draft. He played 40 games last season for the Red Wings in his native Detroit.
Modano announced his retirement Wednesday on his Facebook page and is to have a news conference Friday.
"After a long summer of thinking about my future, I've come to the decision that it's time to retire as a player from the NHL," Modano posted. "There's way too many people to thank here at this time and too much to say, so I have a press conference scheduled for early Friday afternoon. Check back Friday late afternoon for more. What a great ride it's been!"
Modano scored 561 goals and had 813 assists for 1,359 points over 1,459 games played for the Stars. He had at least 30 goals in nine seasons and had a personal best of 50 goals in the 1993-94 season. Those represent franchise records as does his total of post-season goals (58), assists (87) and points (145).
He added four goals and 11 assist to his career totals while with Detroit last season.