The 30-year-old defender, who led his team to World Cup success on Sunday, has called time on his Germany career after 113 caps, the German Football Federation announced.
The Bayern Munich man made his debut for Die Nationalmannschaft 10 years ago.
He has been captain since 2010, when he benefited from an injury to Michael Ballack to lead the team in in South Africa.
"This was a decision which had matured during last season," Lahm told Sport Bild magazine after winning his ninth trophy in just two years.
As well as the World Cup, he was also won the Bundesliga twice, the DFB-Pokal twice, the Champions League, the UEFA Super Cup, the German Supercup, and the FIFA Club World Cup for Bayern during that time.
German Football Federation (DFB) president Wolfgang Niersbach said he did not try to talk Lahm into chancing his mind.
"Philipp called me this morning and informed me personally of this step," he said.