The Ivory Coast international said in a statement on his website: "Writing this note was probably 'the most difficult match of my life'. After 14 years at the highest level, I'm sure this is the right time for me."
"The fact that I am 33 now, the intensity of training and the multitude of games are not the reasons why I am making this decision."
The 33-year-old has been capped 102 times by his country, scoring 19 goals.
The four time African Footballer of the Year was the captain of his national team and led the country to their second-ever African Nations Cup title in 2015.
Toure made his debut for the Ivory Coast in 2004, and replaced Didier Drogba as captain when the striker retired following the 2014 World Cup.