The former Newcastle United, Ipswich Town, Middlesbrough, West Ham and QPR midfielder called time on his career in order to focus on his family.
After breaking through at Ipswich, Dyer moved to Newcastle and performed well, although the latter part of his 17-year career was beset by injuries and at the age of 34, he has decided to hang up his boots.
Dyer made 424 appearances at club level and was capped 33 times for England.
"I am done now, I am content and that is it," he said. "I do not want to move away any more, I just want to spend quality time with my kids.
"Since I went up to Newcastle, I have been all over the country and I have not really had too much quality time with my kids and now I feel that it’s the perfect time.
"It has got nothing to do with injuries, nothing to do with money, it is just that I am content with life."
Dyer has already taken the first steps towards a career in coaching by helping with the youth academy at Ipswich.
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