The 31-year-old midfielder announced on the eve of the Lionesses’ third-place match with Sweden that she was calling time on her playing days.
Carney, a winner of 143 England caps, says the time is right to do something else.
“I am incredibly proud to have achieved so much in the game but now is definitely the right time to retire,” she said.
A scorer of 32 international goals, Carney’s club career has taken in hometown side Birmingham, Arsenal, Chicago and latterly Chelsea.
She also represented Great Britain at the 2012 Olympics and won bronze at the 2015 World Cup with England, as well as lifting this year’s SheBelieves Cup.
“To have played for England was my ultimate ambition and to do so at four World Cups and represent Team GB at a home Olympics was beyond the wildest dreams I had when first starting out,” she added.
“I’d like to thank everyone who has made this all possible from my family and friends, everyone I have played for and worked with and, of course, the England squad and staff. I owe everything I have to all of them.”
England manager Phil Neville added: “Karen deserves all the plaudits that will come her way. It’s been a privilege to work with her over the past 18 months, but even more special has been the chance to get to know someone who is an incredible person and a special team-mate.
“While she will not want a fuss, Karen is someone who deserves total recognition and respect as a true legend of the game.”
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