Aiyegbeni, who also played for Middlesbrough and Blackburn Rovers, made 250 Premier League appearances and scored 96 goals in a career spanning 20 years.
He however also featured three times for English fourth-tier side, Coventry City this year before being released.
“I will like to officially announce my retirement from professional football today,” Aiyegbeni said on Wednesday.
The powerful striker scored 21 goals in 57 appearances for Nigeria and took part in four Africa Cup of Nations (AFCON) as well as the 2010 World Cup.
“The Yak… is third-best all-time scorer of the senior national team. Thank you for the memories,” the Nigerian Football Federation (NFF) tweeted in a reaction.