Miller made his Scotland debut on April 25 2001 in a 1-1 friendly draw with Poland. His first international goal came in his second appearance almost two years later, in a 2-1 Euro qualifying win over Iceland.
He entered the International Roll of Honour in October 2010 after winning his 50th cap in a Euro 2012 qualifier against Czech Republic
Gordon Strachan said: "Kenny is a talented player who absolutely gave the best of himself when he was on Scotland duty.
"In my time as national coach it has been a pleasure to have a player with his ability and experience in the squad.
"He has come to this decision to help prolong his club career, and feels that this is the best time bow out.
"We understand his decision and wish him all the best for the future."
Miller's decision comes just nine days after he scored for Scotland in the 3-2 defeat by England at Wembley and on the day that Gordon Strachan names Ikechi Anya, the Watford midfielder, in his squad for the World Cup qualifiers against Belgium and Macedonia.
That goal was Miller's 18th on his 69th appearance but afterwards the 33-year-old Vancouver Whitecaps striker revealed he would be speaking to Strachan about his future. He is acutely aware that several younger players are now pushing for inclusion and does not want to stand in the way of those forwards gaining vital experience.
After the Wembley appearance, he said: "Who knows what will happen after tonight? But there's a chat with the manager I need to have. We've got games to play against Belgium and Macedonia, and I need to know if I am going to be in his plans."
One man who is, is 5ft 5in right winger Anya. His father is Nigerian and his mother Romanian but the couple moved to Scotland and Ikechi was born in Glasgow in 1988 and raised in Castlemilk. The family moved south when he was seven years old.
Anya spent time with Sevilla, Celta Vigo, Granada and Cadiz before moving to Watford. He scored four times in 29 games last season and has featured in each of their matches this term.
Strachan will announce his squad for the FIFA World Cup 2014 qualifiers against Belgium and Macedonia at 3 pm this afternoon.