The 40-year-old American was a double world champion in Superbikes before moving to MotoGP in 2003.
"I had a few conversations with my kids and my wife, and there are some things I miss," said Edwards as he announced his decision at Austin ahead of this weekend's race.
"I need to be home a little more."
Edwards's greatest success came as team-mate to Valentino Rossi at Yamaha from 2005-07, with fourth in the '05 championship his career highlight.
After being replaced in the works Yamaha fold by Jorge Lorenzo in 2008, Edwards moved to the satellite Tech 3 squad for four seasons.
He then became the first big name to put his faith in the new CRT category when he joined Forward Racing for 2012, staying with the team ever since.
Edwards has not won in MotoGP, but currently has 12 podium finishes and three pole positions to his name.
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