Terry, 31, who has 78 caps with England, took the shocking decision after being convinced that the FA (Football Association) are determined to find him guilty of the offence despite being cleared in a court of law.
The Chelsea skipper said in a statement: "I feel the FA, in pursuing charges against me where I have already been cleared in a court of law, have made my position with the national team untenable."
"I am today announcing my retirement from international football."
"I would like to thank the England managers who have selected me for my 78 caps. I have had great pleasure in sharing that honour with all the players that I've played with."
"I would like to thank them, the fans and my family for their support and encouragement during my international career."
"Representing and captaining my country is what I dreamed of as a boy and it has been a truly great honour. I have always given my all and it breaks my heart to make this decision," Terry said.
"I want to wish Roy (Hodgson) and the team (England) every success for the future."
However, Terry was cleared of any abuse by the court of law in July. Back in 2010, Terry was stripped of the England captaincy for having an affair with the girlfriend of former Chelsea and England team-mate Wayne Bridge.
The 31-year-old lost the armband again in February after it was revealed he would stand trial for alleged abuse of QPR defender Ferdinand.
Despite all these allegations, Terry took part in the European championships in Poland-Ukraine which sparked yet another controversy as Anton Ferdinand's older brother Rio Ferdinand was dropped from the England squad.