The 35-year-old announced on social media that it was time to "hang up his gloves" after an "amazing career" and almost three decades involved in the sport.
He said: "It’s time to hang up my gloves. I feel blessed to have had such an amazing career that has spanned over 27 years in a sport that I love with a passion.
"From the young 17-year-old Bolton lad achieving his dream of winning an Olympic medal for his country and becoming a two time world boxing champion.
"Boxing has made me and has given me a platform which I have proudly used to to help and inspire others.
"I want to say a heartfelt thanks and to the incredible teams I have worked with and to my family, friends and fans for the love and support they have shown me."
Khan retires with a professional record of 34 wins from his 40 fights, leaving a legacy as one of the finest British boxers in history.
The announcement comes after losing a one-sided grudge fight by long-time rival Kell Brook in Manchester in February 2022.
Brook, who described his victory over Khan as the 'icing on the cake', announced his own retirement last weekend.