The 32-year-old made the announcement a day after joining Major League side New York Red Bulls from Barcelona.
Henry said he was "fully committed" to the Major League side and did not want to travel regularly back to Europe to play for Les Bleus.
The 1998 World Cup winner is France's all-time record goalscorer with 51 goals in 123 games.
Speaking in New York on Thursday, Henry, who also won the European Championship with France in 2000, said he decided before this year's World Cup finals in South Africa that he would retire.
"I couldn't announce it before because that's the not type of thing you announce before a World Cup," he said.
He was twice used as a substitute in France's disastrous campaign, playing in the group matches against Uruguay and South Africa as the team lost two of their three matches and failed to reach the knockout stages of the competition.
"That was my last game against South Africa. Ironically, it was also my first game in the national team against South Africa," Henry added, referring to his debut in a 2-1 victory against South Africa in 1997.
The French squad went on strike and refused to train before the South Africa match after striker Nicolas Anelka was sent home for verbally abusing coach Raymond Domenech, who has since been replaced by Laurent Blanc HERE
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