Lynch hinted about retiring on Sunday, when he tweeted a picture of cleats hanging off a power line.
The 29-year-old Lynch struggled through an injury-plagued 2015 season with a hamstring issue and then abdominal surgery, and played in only seven regular-season games. He finished with just 417 rushing yards on 111 carries.
Lynch returned for the NFC divisional playoff game against the Carolina Panthers but had little impact during the Seahawks' 31-24 loss to the Panthers.
Lynch played nine NFL campaigns, the first three-plus seasons with the Buffalo Bills. He was acquired in an in-season trade by the Seahawks in 2010 and became one of the key figures in Seattle's rise, which included a victory over the Denver Broncos in Super Bowl 48.
Lynch rushed for over 1,200 yards in four consecutive seasons, topped by 1,590 yards in 2012. He rushed for 48 touchdowns during that four-season run from 2011-14.
Overall, Lynch gained 9,112 yards on 2,144 carries in his NFL career. He ran for 74 touchdowns and added 252 receptions for 1,979 yards and nine touchdowns.
While Lynch helped guide the Seahawks to a Super Bowl win after the 2013 season, he famously didn't get the ball at the goal line in the following season's Super Bowl. Instead, quarterback Russell Wilson threw an interception that sealed the New England Patriots' win.
Lynch rushed for 102 yards and one touchdown in the Super Bowl defeat.
Lynch largely avoided the media spotlight as one of the NFL's top players. He earned the nickname "Beast Mode" for his bruising running style and some member of the Seattle organization pounced on that term in messages they sent to him upon learning of his plans on Sunday.
The Seahawks retweeted a message from team owner Paul Allen that read: "@Seahawks Thank you @MoneyLynch for a great career as a Seahawk. So many memorable runs and quakes! #BeastMode !"
Seahawks cornerback Richard Sherman replied to Lynch's tweet by posting on Twitter, "Salute to my guy @MoneyLynch ... It was an honor sharing the field with you."
Seattle quarterback Russell Wilson tweeted, "Honor playing with one of the best running backs of all time! Going to miss sharing the backfield with you 24... #BeastMode @MoneyLynch"
Before joining the Seahawks, Lynch posted two 1,000-yard season for the Bills. He fell out of favor with the organization and drew a suspension for having a gun in the trunk of his car.
Lynch played college football at Cal and was the 12th overall selection of the 2007 NFL Draft.