Sebastian Vettel waves to his supporters. File photo
The 35-year-old German, who currently drives for Aston Martin, won four successive titles from 2010 to 2013 with Red Bull.
His 53 Grand Prix victories place him third on the all-time list behind Lewis Hamilton (103) and Michael Schumacher (91).
"The decision to retire has been a difficult one for me to take, and I have spent a lot of time thinking about it," Vettel said in a team statement.
"At the end of the year I want to take some more time to reflect on what I will focus on next; it is very clear to me that, being a father, I want to spend more time with my family. But today is not about saying goodbye.
"Rather, it is about saying thank you — to everyone — not least to the fans, without whose passionate support Formula One could not exist."
Vettel joined Aston Martin last season after six years at Ferrari, with whom he twice finished runner-up for the world title to Hamilton in 2017 and 2018.
He came 12th in 2021 with his new team after achieving just one podium finish. Vettel is 14th in the standings this season.
Vettel, who joined in 2015 with the dream of emulating boyhood hero Michael Schumacher in winning titles with the sport's oldest and most glamorous team, is out of contract at the end of the year.
Sebastian Vettel is feeling optimistic about his new Formula One career with Aston Martin after turning the page on a miserable last season with Ferrari. Things went from bad to awful for the four-time F1 champion in 2020.
Brown, the architect of McLaren's resurgence after a spell in the doldrums, told the Daily Mail he believed Max Verstappen of Red Bull and George Russell of Williams will be recruited by Mercedes in an all-new line-up for 2022.
Currently, Babar is placed at the top with 818 rating points, however, India's Suryakumar Yadav is not far behind as he has 805 rating points. Last week, he stood at 816 points, just two points shy of Babar.
The tournament will be held over the weekend of Feb.18-19, 2023 at Zayed City Sports Stadium, an iconic landmark in Abu Dhabi and the largest multi-purpose sports venue in the UAE.
The 73-year-old was on his way back home from Cape Town to Despatch in Eastern Cape, after a golf weekend when the tragic incident took place. Three others were also killed in the crash.