The Welshman, who spent six months on loan at Celtic during the 2004/05 season, winning the Scottish Cup - stated that his body "couldn't take it any more".
A playing career which spanned 17 years has ended at hometown club Cardiff City. He rebuffed offers from clubs in England and the United States to continue playing and will instead pursue an ambition to become a manager.
"I'm taking my full coaching badges," said Bellamy, who represented his country 78 times. "I've got A, B and C, I just need to do the Pro-Licence which will prepare me properly for management."