The 24-year-old has taken the decision based on recommendations from his medical team and consultations with leading cardiologists across Europe.
'Since suffering my heart attack and being discharged from hospital, I have remained utterly positive in the belief I could one day resume my playing career and play for Bolton again,' said Muamba.
'While the news is devastating, I have much to be thankful for.'
Muamba collapsed on the pitch during Bolton's FA Cup tie at Tottenham last season and, although his heart stopped for 78 minutes, he made a miraculous recovery to spark rumours he may return to the pitch.
The former Arsenal youngster says he is sad to be ending his career so soon, but will remain positive.
'I thank God that I am alive and I pay tribute once again to the members of the medical team who never gave up on me,' he continued.
'I would also like to thank everyone who has supported me throughout my career, and the Bolton fans who have been incredible.'
After a one-month stay in hospital following his collapse, Muamba was fitted with a device which would re-start his heart should it stop again.
He also underwent minor heart surgery in Belgium earlier this month and also revealed that he played football while on holiday with friends over the summer.
'Football has been my life since I was a teenage boy and it has given me so many opportunities,' he said.
'Above all else, I love the game and count myself very lucky to have been able to play at the highest level.'
Bolton manager Owen Coyle added: 'We have spoken with Fab and he knows we will always support him in whatever he wants to do and that we will always be here for him.
'We know that he will go on to achieve great things and within all this disappointment, the most important thing is that he is here, alive, today.' Click to signup for FREE news updates, latest information and hottest gists everyday
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