Posada, 40, played 17 years in the major leagues, all with New York, helping the Yankees win the World Series in 1998, 1999, 2000 and 2009. A career .273 hitter with 275 homers and 1,065 RBI, Posada hit just .235 with 14 homers and 44 RBI last season when he was used as a designated hitter.
Posada earned all-star status five times during his career. Only Hall of Famers Bill Dickey (1,708) and Yogi Berra (1,695) have caught more games for the Yankees than Posada's 1,574.
Word of Posada's impending retirement got out early this month when it was learned he had told his teammates of his intentions after the Yankees showed little interest in re-signing him.