Shane Watson has retired from Big Bash League, but will continue playing select overseas tournaments.
The 37-year-old, who called time on international cricket in 2016, made the decision to spend more time with his family.
"I have so many amazing memories that I will savour forever with the one standout being our (tournament) win in 2016," he said.
"To my teammates, I have played with so many great people and cricketers at the club and I sincerely wish everyone the absolute best for the upcoming seasons."
Cricket Australia chief executive Kevin Roberts congratulated Watson on a "dynamic career".
"Shane Watson was one of the most exciting short-form players ever to grace a cricket field," he said.
"In a career which spanned almost two decades Shane made a major contribution to Australian cricket firstly at international level and then in domestic cricket as a significant contributor to the Big Bash.
"Talented, skillful and powerful, Shane was a devastating batsman at his best."
Watson ends his BBL career with 1058 runs and 20 wickets in 42 games.
Sydney Thunder head coach Shane Bond called Watson an ultimate professional.
"He was great to work with, he’s the ultimate professional. He cared about the team and the players and was hugely respected in the dressing room. We're really going to miss what he brings to the team and he will be a big loss."