Wallace, who made a brief comeback last month, was part of Ireland’s grand slam-winning team in 2009 and won 72 caps in an 11-year international career.
The combative number seven won two European Cups with Munster and toured with the British and Irish Lions in 2001 and 2009, following in the footsteps of brothers Richard and Paul to make the Wallaces the only three members of the same family to play for the Lions.
“Although it’s disappointing that injury is forcing me to retire now, I take great comfort that I’ve had an unbelievably enjoyable career and I feel very lucky to have been involved in an era that has seen Munster and Ireland enjoy so much success,” Wallace, 35, said in a statement.
“Professional rugby has exploded in popularity and changed beyond all recognition in this country since I began and I feel honored to have played witness to it’s massive improvement.”
Wallace is the fourth experienced Irish player to call time on his career recently after long-term injuries forced Shane Horgan and Jerry Flannery to quit and fellow Munster forward Mick O’Driscoll also decided to hang up his boots at the end of the season.
