Bonucci, widely regarded as one of the best central defenders of his generation, spent 12 seasons of his glittering 19-year professional career with Juventus, where he made a total of 502 appearances in all competitions.
He was an integral member of the Juve squad that won eight Serie A titles, four Coppa Italias and five Supercoppa Italianas - and also reached two Champions League finals - during his time at the club.
Bonucci also represented boyhood club Viterbese, Inter Milan, Treviso, Pisa, Bari, AC Milan and Union Berlin, before finishing his club career with Fenerbahce.
The defender is the fourth-most capped Italy international in history having made 121 appearances for the Azzurri, and he triumphed on the continental stage at Euro 2020, eight years after playing in the side that lost to Spain in the Euro 2012 final.
Bonucci believes that now is the right time to hang up his boots and he confirmed his decision by posting a video on social media.
In the video, Bonucci said: "As a child, I dreamed of this story I would tell, promising myself achievements to embrace against the biggest, celebrating, having faith through difficulties with courage.
"A father, a teammate, a husband, a player. Beyond. Beyond history today, I am me."
Juventus have since paid tribute to Bonucci, saying: "A player who formed an enormous part of our recent history has decided to leave the world of football.
"Leonardo Bonucci has decided to retire from football, an announcement that touches us deeply, because Leo has his name etched into the Juventus archives.
"We said goodbye last September, but the thread that binds us cannot be broken. Not even now that Leo has decided to embark on a new chapter in his life, for which we wish him only the best."
Bonucci left Juventus last summer to join Union Berlin, but he only made 10 appearances for the German club before leaving in February to sign for Turkish giants Fenerbahce, where he played 13 times including his final club appearance in a 6-0 victory over Istanbulspor last weekend.