The 31-year-old Frenchman - once ranked as high as fourth in the world - said that his body had told him it was time to call a halt to his career.
"I am going to stop playing at the end of the season," said Grosjean, who was twice a semi-finalist at both the French Open and Wimbledon.
"It is not really my decision, it is my body that has persuaded me it it is time to do so."
Grosjean, who was part of the French team that won the Davis Cup in 2001, will only play in the doubles at the forthcoming French Open alongside compatriot Richard Gasquet.
"I did not ask for a wild card for the singles tournament because I am not ready physically for a five set match and I did not want to take the place of a young player," he said.
Grosjean won four ATP titles, including Bercy in 2001 which gained him a place at the season ending Masters tournament where he lost to Australian Lleyton Hewitt in the final.