Driver, 38, won a Super Bowl championship with the Packers in 2011 and retires as the team's all-time leader in receptions (743) and receiving yards (10,137).
"I have to retire a Green Bay Packer," a tearful Driver told about 1,500 fans who attended a celebration for the sure-handed receiver inside the Lambeau Field atrium.
"I've always said I never wanted to wear another uniform, but always the green and gold."
Wisconsin Governor Scott Walker declared Wednesday "Donald Driver Day" to honour the player who tops the franchise list with most 1,000-yard seasons (seven), most 50-catch seasons (nine) and most consecutive games with a reception (133).
Driver, a three-time Pro Bowl receiver, was limited to eight catches for 77 yards and two touchdowns last season.