Scholes, 38, previously announced his retirement at the end of the 2010/11 season, but made a shock return to the team on 8 January 2012 when he came on as a substitute in the FA Cup third round victory at Manchester City.
The midfielder was part of the new wave of talent that came through to the first-team during the mid-1990s, and has gone on to enjoy a long and successful career, making an incredible 716 appearances for Manchester United.
Sir Alex Ferguson said: “Paul is a truly unbelievable player. He has always been fully committed to this club and it has been a real privilege to work with him for so many years. Paul will play at Old Trafford on Sunday against Swansea and will collect an unbelievable but well-deserved 11th Premier League medal."
Paul Scholes said: “Yes, I am finally hanging up my boots for good! Playing football is all I have ever wanted to do, and so to have had such a long and successful career at Manchester United, under the greatest manager of all time, has been an honour. The team has the right balance and will continue to thrive under the leadership of David Moyes.”