Bardsley has struggled for game time after picking up a hamstring injury at the 2019 World Cup.
The experienced 37-year-old has won 81 caps for England and eight major City trophies, including their first-ever Women’s Super League title.
Her last match in a Manchester City shirt was in January against Aston Villa.
“Ultimately I want people top know that I always gave my best.
“When your body doesn’t match what your mind wants to do, it’s frustrating.
“The risk outweighed the rewards in terms of life after football. If I needed to go through another surgery like the ones I’ve been through I don’t think it would be good for me, physically or psychologically.”
Bardsley played in three World Cups and two European Championships for England, winning the SheBelieves Cup in 2019.
She was also involved at the London Olympics in 2012 with Team GB, who lost 2-0 to Canada in the quarter-finals.
Bardsley has been at Manchester City since 2014, winning a Women’s Super League title in 2016 along with three FA Cups and four League Cups and has made over 102 appearances for the club.
Bardsley started her career in 2009 at American side Sky Blue FC, before a spell in Sweden followed with Linkopings. From there she moved to WSL side Lincoln City Ladies in 2013 before making the switch to City.
After spending last season on loan at US side OL Reign, she signed a one-year contract extension with the Manchester club back in July last year.
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