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A three-time Ashes winner and the only man to captain England to a global trophy after leading them to glory in the 2010 World Twenty20, Collingwood played 68 Tests, 197 one-day internationals and 36 T20 matches.
The 42-year-old has been described by his county side Durham as their “greatest-ever run scorer and most illustrious player”.
“After much thought and deliberation I have decided to announce my retirement from cricket at the end of the current season,” Collingwood said.
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Durham chairman Ian Botham said: “Paul is one of the greatest all-rounders to ever grace the game of cricket and to have him playing at Durham, his home county, for all these years has been an absolute privilege.