The French point guard was drafted 28th by the San Antonio Spurs in 2001 and won the title with them in 2003, 2005, 2007 and 2014, before joining the Charlotte Hornets last season.
Parker was also a European champion with France in 2013.
"If I can't be a Tony Parker anymore and I can't play for a championship, I don't want to play basketball anymore," he told the Undefeated.
Parker played 56 games for the Hornets last season, but all his appearances were from the bench.
The six-time All-Star said on social media: "It's with a lot of emotion that I retire from basketball, it was an incredible journey! Even in my wildest dreams, I never thought I would live all those unbelievable moments with the NBA and the French national team."
Parker started 1,151 regular season games and averaged 15.5 points and 5.6 assists per game. He also played in 226 playoffs games, averaging 17.9 points and 5.1 assists per game.