His decision comes after his latest injury setback suffered in Australia’s one-day international tour of England and Ireland.
He returned to Australia early after sustaining a calf muscle strain – the latest in a long-line of injuries in recent seasons.
Australia’s selectors were keen for the veteran paceman to play on until the Twenty20 World Cup in September but Lee, 35, is said to be frustrated with the rehabilitation involved in getting his body right.
He claimed 310 Test wickets from 76 matches and returned 380 wickets in 221 one-day internationals.
Lee, who was not offered a national contract in Cricket Australia’s latest round of agreements and declined a deal with NSW, will make the announcement at 1pm at the SCG.
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“It has been a dream career, I guess, 13 years at the top. I couldn’t ask for much more,” Lee told Channel 9 this morning.
Although it had been “in the back of my mind for a few months” Lee confirmed he did not make the decision until today.
“Thirteen years, Friday the 13th, it’s appropriate for me to go,” Lee said.
“I woke up this morning after not much sleep and it’s the right time to go. It just came to me this morning and I just felt it’s the right time to leave the game.
“It’s now stage two of my life coming up so I’m pretty happy and pretty excited. My holiday will be at home, I’m sick of being away.”
He will reveal more this afternoon when it’s expected he confirm his availiability for the domestic Big Bash League and the Indian Premier League.