The 35-year-old confirmed the news today, following a hugely successful career that lasted 20 years.
Riise joined Delhi Dynamos FC after a successful stints at Monaco, Liverpool, Roma and Fulham. In the seven years at Liverpool, he cemented his reputation as arguably the best left-back of the Premier League era.
Riise played with Delhi Dynamos FC in the Hero Indian Super League, 2015 as DDFC's marquee player. Riise was one of the biggest draws of the ISL and played an important part in the club's successful campaign.
Riise has, on previous occasions, expressed interest in coaching. On being asked, he said, "I can't reveal much about my future plans right now. It's still too early. I want to spend time with my family, most importantly. And, hopefully, continue to stay involved with football."
Club president Prashant Agarwal expressed his sadness at learning about the development and said, "He's still in such fine form. What a fabulous player. Everyone at Delhi Dynamos FC is going to miss him. He'll always be special. He was one of the pillars of our successful ISL 2015 campaign, and his towering presence made a huge difference to the dressing room. We'll surely miss him.