WFAN-AM, New York, first reported Posada -- a five-time all-star who played on four World Series champion Yankees squads -- has told teammates he will retire after New York showed little interest in re-signing him.
The report was confirmed by ESPN and The New York Times Sunday.
The switch-hitting 40-year-old compiled 275 homers, 1,065 RBI and a .273 batting average in 1,829 career games over a 17-year career, but by last season had been reduced to a part-time designated hitter.
Posada was effective in the post-season, where he batted .248 with 11 home runs, 23 doubles and 42 RBI over 125 playoff games. He also played well in last season's American League Division Series against Detroit, going 6-for-14 with a triple.
The potential future Hall of Famer will be reckoned with the greatest Yankees catchers alongside Yogi Berra, Bill Dickey and Thurman Munson.