The six-year-old mare won her final race in front of a sell-out crowd last Saturday when she claimed the TJ Smith Stakes at Royal Randwick in Sydney.
"We thought 25 was a great number. It's the right time to call it a day on what's been a wonderful career of one of the finest horses we have ever seen," trainer Peter Moody said at Caulfield race course in Melbourne.
"We thought long and hard about racing on for another season. We thought about Royal Ascot, we thought about Brisbane and we thought about Adelaide but we believe she has done everything we've asked her to do.
"She couldn't have possibly done any more."
Visibly upset, Black Caviar co-owner Neil Werrett said he wished for nothing more than to see Moody train one of the horse’s descendants within three years.
Her partner for 22 of her 25 career wins, jockey Luke Nolen also found the news hard to digest.
“I’m still going through the emotions and digesting Saturday’s win,” said the Australian rider. “It will probably only sink in when she’s in the paddock somewhere and I give her a pat. That’s when it will hit home and I’ll know that it’s really over.
"For a long time I wasn’t sure if I wanted to be remembered for just for the one horse, but I smile when I think that in years to come people will talk about Black Caviar and they’ll talk about me. That sits very well with me now.”
Nolen will have one last chance to partner the darling of the nation this coming Saturday, when she will appear at Caulfield for a farewell parade.
Widely regarded as the best sprinter in the world, Black Caviar retires with 15 Group One wins to her name.
Last Saturday's triumph eclipsed Kingston Town's Australian record of Group One victories and it placed her in the pantheon of great Australasian racehorses alongside 1930 Melbourne Cup winner Phar Lap and triple Melbourne Cup winner Makybe Diva.
She won just under £5.4 million in career earnings.
Black Caviar will now embark on a breeding career with retired unbeaten British Thoroughbred Frankel being feted as one of her future stallions.