White had hoped to return to competitive action after the birth of her first child last October, but revealed knee problems had forced her to call time on her career. White won 90 caps for England and captained her country at four major tournaments.
"I retired from England when I announced I was pregnant last April but left the door open with Arsenal," the 35-year-old told The Times.
"But even now, after getting back to some sort of fitness after having Lukas, my knees won't allow me to do what I could before.
"Everyone says it's because I've had a baby. But it's not.
"I could have juggled the demands. The will was still there. The rest of my body could have done it, but my knees couldn't and you have to think of your later life as well."
White's decision comes just a day after Michael Owen announced he would hang up the boots at the end of the season.
Both have been key figures in English football over the past decade although, unlike Owen, White will not play on until the end of the season meaning she will watch from the sidelines as Arsenal meet Italian side Torres in their Women's Champions League quarter-final on Wednesday.
"I'll still be involved at Arsenal in my job as a development marketing officer," she said.
"I am looking into coaching, but I love the ambassadorial work I do with Arsenal."