Scholes, 29, who has spent his entire career at United, has 66 England caps, scoring 14 goals.
He scored in England's 4-2 win over Croatia in the group stages of Euro 2004, his first goal in over three years at international level.
"This is a decision I have not taken lightly, I have been considering retiring from international football for a while now," Scholes told United's official website on Tuesday.
"I started my England career in 1997 and have enjoyed seven years of great football, playing in the best competitions, with some of the best players, under the best managers."
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