Flanked by Neath Swansea Ospreys joint managing director Roger Blyth, 53 times capped Gibbs said: "Having played club and international rugby for the best part of 15 years, I have finally reached agreement with the Ospreys, to bring my rugby playing career to an end.
"When I was asked to come on board with the Ospreys as captain, as Welsh rugby moved to a regional structure last year, we both agreed that, after the team was fully established, I would announce my retirement from the game at some point during the season. As today is also my 33rd birthday, it seemed the appropriate time to blow the final whistle.
"It's vital to me that I end my playing career as part of the Ospreys, not only because I started my career with Neath and played the vast majority of my union days with Swansea, but also because I wanted to play a part in the new era of Welsh regional rugby. Regional rugby is now taking shape in Wales and the standard of the game is rising as a result of its introduction and I'm just happy to have been involved as the game in Wales moves into a new and exciting era.
"My passion will always be rugby, but I have an active and demanding business career away from the pitch and this is now where I want my focus to firmly settle.
"Nevertheless, I do intend to stay involved but, rather than this revolve around playing the game, I have agreed with the Ospreys to take on a mentoring role for the group of extremely talented younger players who are currently coming up through the club's youth academy.
"Rugby has been good to me and I'd like to think, in return, that I've been good to it. But, I'm grateful to Welsh rugby in particular, for giving me the opportunities it has and I look forward to a the new generation of players now coming through with the capability to put in and get the very best out of rugby."
Neath-Swansea Ospreys, joint managing director Roger Blyth said:
"Scott is one of those rare players to whom, in my opinion, Welsh rugby owes a great deal. He has been a consummate professional throughout his career, someone who is proof positive that Welsh rugby can deliver the very best of the best when it comes to not only club rugby, but European and international rugby also. His Lions tour of 1997, which included victory over South Africa and where he was named man of the series, and his momentous game winning try for Wales against England in 1999 are just two highlights in a truly glittering career.
"When Scott joined the Ospreys as skipper at the start of the season, we knew that this would be his last season of rugby and that he would be bowing out after the Ospreys got off the ground. Despite wanting to retire towards the end of last year, we convinced Scott to stay on.
"Today, I know, is a bittersweet day not only for Scott but for the Ospreys too. And I'm delighted that, despite now throwing himself into his business career with the same passion he showed rugby, Scott has agreed to spend time with our developing players as a mentor. And a better mentor the game could not possibly have than Scott Gibbs."