The Argentine joined Inter in 1995 as Massimo Moratti's first signing after taking over the club. After a long-time in service, he found that he could not carry on, reported Xinhua.
"After suffering the Achilles injury last April, I wanted to demonstrate that I could return and be competitive, but I could not," he said.
"Now it is the right time to leave," he said.
"I have realised that to retire at 40 is a priceless feeling. For me, it is something that has immense value," he added.
Inter president Erick Thohir has revealed that the full-back and midfielder would join the club's management as a director.