The 28-year-old, a three-times world champion, is considered Britain's greatest ever gymnast.
News comes one year to the day that Tweddle won her bronze medal at the London 2012 Olympic Games.
The Johannesburg-born gymnast had previously stated that she would not be competing at the 2016 Olympics and has now decided to call it a day before the Commonwealth Games in Glasgow next year..
She will now turn her attention to running an Olympic legacy programme, which opens next month at Chobham Academy's East Village.
Tweddle said: “It’s been a hard decision to make; gymnastics has been and always will be a massive part of my life.
"Following the Olympics I’ve had a lot of projects on and recently I’ve had a bit more time to get back into the gym and decide whether I could put 100 per cent into it and I know now deep down I can’t commit to the hours and training to remain at the very top."
Tweddle was world champion on three occasions and European champion six times, with Lord Sebastian Coe, London 2012 chief and British Olympic Association chairman, paying tribute to her on Tuesday.
He said: "During a remarkable career that has seen her achieve unprecedented success at every level of competition, Beth Tweddle has set a new standard of excellence for British gymnastics.
"She has been an inspiration and a role model for a generation."