'I would like to advise of my retirement from cricket, effective from today. I do so with a deep awareness of the opportunities that the game and Cricket Australia have provided for me,' the 35 year old said in a statement.
'However, I'm also aware of the tremendous challenges facing Australian cricket including this current Ashes series.'
'Such challenges require people who are more than 100 per cent committed, dedicated, disciplined and passionate about the game, what it seeks to achieve and how those involved in the game can best serve cricket, sport and the wider community.'
'I feel, therefore, it's time for me to move aside. I have enjoyed everything the game has given me. I have gained from it more then I could have ever imagined. I have made, in the playing of cricket, life-long friends,' he said.
Martyn, who played 67 Tests and made his debut against the West Indies in 1992, was under pressure in the current Ashes series against England after making scores of 29, 11 and 5 in the first two Tests in Brisbane and Adelaide.
He was widely predicted to lose his place in the Test team for the third Test starting in Perth on December 14.
Australian captain Ricky Ponting said: "This decision is obviously something Damien has thought long and hard about and I know that I and all of the other members of the team will miss him greatly."
