The former Reds captain, who spent 17 years in the first team at Anfield and was the club’s skipper from 2003 until his departure in the summer of 2015, confirmed the decision on Thursday morning.
In a statement, he said: “Following recent media speculation surrounding my future I can confirm my retirement from playing professional football.
“I have had an incredible career and am thankful for each and every moment of my time at Liverpool, England and LA Galaxy.”
The Huyton-born midfielder graduated from Liverpool’s Academy and made his senior debut as a substitute against Blackburn Rovers in November 1998, ultimately clocking up 710 games and 186 goals.