The 31-year-old German won his first world title on Sunday, beating Mercedes team-mate Lewis Hamilton by finishing second in the final race in Abu Dhabi.
"I have climbed my mountain, I am on the peak, so this feels right," Rosberg said in a Facebook post.
Rosberg won nine of this season`s 21 grands prix, beating three-time champion Hamilton by five points.
"For 25 years in racing, it has been my dream, my `one thing` to become Formula 1 world champion," he added.
"Through the hard work, the pain, the sacrifices, this has been my target. And now I`ve made it."
The son of Finland`s 1982 world champion Keke, Rosberg made his F1 debut for Williams at the Bahrain Grand Prix in 2006, finishing seventh.
Nico Rosberg retires: World champion quits Formula 1
02 December 2016
Read: 1725
World champion Nico Rosberg has announced he has retired from Formula 1 with immediate effect.
