Bogut, widely considered one of the most influential and successful players in Australian basketball history, made the announcement on his Rogue Bogues podcast.
"The decision hasn't been an easy one, but I think it is the right decision," Bogut said. "The decision that I made and where I will be signing for next season is absolutely nowhere. I will be retiring from professional basketball, effective immediately.
"We are in late November now. I would have made this decision earlier if it wasn't for the postponement of the Tokyo Olympics. I was hoping to get to the 2020 Olympics and call it the day after that as it would have been a great accolade to get a fourth Olympics, but it's just not meant to be."
The 36-year-old Bogut, who was the No. 1 overall pick in the 2005 NBA Draft, had a professional career that spanned 15 years. He played for five different NBA teams -- the Bucks, Warriors, Dallas Mavericks, Cleveland Cavaliers and Los Angeles Lakers -- and won one championship.
Bogut also was named to the All-Rookie First Team in 2006 and the All-NBA Third Team in 2010. He was an All-Defensive Second Team selection in 2015 and finished as the league leader in blocks in 2011.
After his injury-riddled career in the NBA, Bogut decided to end his career in Australia's NBL. He signed with the Sydney Kings in 2018 and went on to win the league's MVP award that season.
In his final season with the Kings, Bogut averaged 8.5 points, 8.8 rebounds and 1.1 blocks per game.
"I can't physically and mentally get to 2021 with the way my body has been," Bogut said Monday. "I could get there with a lot of painkillers and mental anguish but it's just not worth it.
"I'm really starting to value my health away from the court and my health when I'm 40, 45 and 50. Some people might say it's only six months of training but I'm at a point where I just can't do it."
Over his 14-year NBA career, Bogut averaged 9.6 points, 8.7 rebounds and 1.5 blocks per game.