Having hung up his boots, he will remain in Canada and move into the role of Director of Corporate Development with Maple Leaf Sports and Entertainment.
In a lengthy message via Twitter, Caldwell wrote: "It's with a heavy heart that I announce my retirement from the game I love. Football has been my life since a very young age and I appreciate the opportunity I've had to live my dreams.
"I would like to thank all my teammates and coaches I've learnt from along the way. Some friendships and bonds I have made that will last forever.
"Newcastle, Blackpool, Bradford, Leeds, Sunderland, Burnley, Wigan, Birmingham and Toronto. All magnificent clubs. It was an honour to wear your shirt. I hope the fans appreciate the pride I felt pulling on their jersey.
"And finally TFC. I appreciate this club more than all other. The opportunity to stay here and be a part of the success that will come is a privilege. I feel responsible and committed to doing everything I can to help this club prosper and win."
Toronto general manager Tim Bezbatchenko said: "Steven Caldwell is a true professional in every sense of the word and has played an important role at Toronto FC since his arrival. We appreciate his endless contributions to the Club.
"He will be missed on the pitch, but we are all very excited that Steven will be remaining with MLSE on the business side and continuing to be a part of the future of Toronto FC. I know personally Steve loves this Club, and he can now express the passion and commitment we are used to seeing on the field in another capacity within the organization.”
Caldwell did a terrific job for Burnley in three and a half years at the club. He was signed late into the night at the end of the January transfer window in 2007 and was very quickly appointed as the club captain by Steve Cotterill.
He was a influential player in the promotion under Owen Coyle and the only disappointment was his missing so much of the Premier League season in 2009/10 because of injury.
I don't think anyone who came across him during his career would disagree with Bezbatchenko's opinion that he was a true professional.
Caldwell was an outstanding player for us, a damn good captain, and a top man too who helped me only recently in offering me some words for Michael Duff at the recent player of the year evening.
I wish Steven Caldwell the very best and know he'll be successful in whatever he does.
