The 33-year-old swashbuckler, who played 104 Tests and 136 ODIs, is set to end as England's highest run-scorer in all formats of the game after a career spanning nine years.
"Playing cricket for my country has been an honour. Although I am obviously very sad the incredible journey has come to an end, I'm also hugely proud of what we, as a team, have achieved over the past nine years," Pietersen said in a joint statement with the ECB after what was being seen as a forced retirement.
"I feel extremely fortunate to have played at a time of great success for England cricket alongside some of the best cricketers the country has ever produced. I want to thank everyone for their fantastic support and I wish the team the very best of success going forward.
"I believe I have a great deal still to give as a cricketer. I will continue to play but deeply regret that it won't be for England," he added.
Newly-appointed ECB managing director Paul Downton said it was a "tough decision" to drop Pietersen as part of a rebuilding process with the focus on next year's World Cup.
"Everyone was aware that there was a need to begin the long-term planning after the Australia tour," said Downton.
"Therefore we have decided the time is right to look to the future and start to rebuild not only the team but also team ethic and philosophy.
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