Signed from Doncaster Belles, the 32-year-old defender began her Chelsea career in 2015 and made 314 appearances for the Blues.
Bright, who will take on a new role as a Chelsea ambassador, lifted 20 trophies and ends her career as the Women’s Super League club’s longest-serving player.
“Representing Chelsea over the last 12 years has been everything to me, but I’m now ready to say goodbye to playing football,” she said.
“I’ve given all I can, and I never wanted to fight for any other badge.
“It is now time, and I’m ready to go into a new era. I’m always going to be Chelsea, but just in a different way.”
Bright, who has not played since February because of an ankle injury, won 88 caps for England.
She won the European Championship on home soil in 2022 before skippering the Lionesses to the World Cup final the following year, in the absence of injured captain Leah Williamson.
“Everyone at Chelsea is so proud of Millie’s contribution to the club and the women’s game during its unprecedented period of growth,” Chelsea said in a statement.
“We look forward to continuing to work with her as she moves into her roles off the pitch with the club.”
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