Yuvraj, 37, was player of the tournament when India won the 2011 World Cup and played a key role in the World Twenty20 triumph in 2007.
He was diagnosed with lung cancer in 2011 but returned after treatment. He played 40 Tests, 304 one-day internationals and 58 T20s in a 13-year international career.
Yuvraj will continue to play in domestic T20 leagues.
Does Yuvraj make your team? Pick your all-time India XI
Dhawan shines as India beat Australia at World Cup
A destructive left-handed middle-order batsman and left-arm spinner, Yuvraj famously hit England bowler Stuart Broad for six sixes in an over at the 2007 World T20.
He scored 8,701 runs at an average of 36.55 in ODIs with 14 hundreds and 52 fifties, and took 111 wickets at 38.68 apiece.
His last appearance for India came in an ODI against West Indies in 2017.
He was part of the victorious Mumbai Indians squad at this year's Indian Premier League, playing four matches. He said the 2019 edition would be his last IPL.
"Cricket has given me everything and that's the reason why I am standing here today," Yuvraj said.
"It's been a love-hate relationship with the sport in retrospect.
"At this age I can manage some kind of fun cricket. I am going to go and enjoy my life."
(Except for the headline, this story, originally published by BBC Sport has not been edited by SLM staff)