The 34-year-old Clarke said he will bid adieu to all forms of cricket after the 5th and final Ashes Test against England at The Oval starting on August 20.
Clarke's announcement came soon after Australia lost the 4th Ashes Test by an innings and 78 runs at Trent Bridge, with that the series 1-3 to the Alastair Cook-led English side.
The right-handed Clarke will end his international journey with 115 Test caps. He has already retired from limited overs format. He quit ODIs after leading Australia to World Cup victory in March this year at home.
England skipper Alastair Cook said of Clarke, "He should be remembered as a great cricketer and a fantastic captain."
Here are some of the tributes to Clarke
Congratulations to Michael Clarke on a brilliant career. He's the best player of spin I bowled at and a bloody good bloke to boot
Congratulations to Michael Clarke on a brilliant career. He's the best player of spin I bowled at and a bloody good bloke to boot— Graeme Swann (@Swannyg66) August 8, 2015