Cavendish, who celebrated his 38th birthday on Sunday, made the announcement at a press conference on the rest day of this year's Giro D'Italia.
The Manxman boasts 53 Grand Tour stage victories and a world title, and is still set to compete at the Tour de France in July, where he could break the record of 34 stage wins he currently shares with Eddy Merckx.
Cavendish said: "I've absolutely loved racing every kilometre of this race so far, so I feel it's the perfect time to say it's my final Giro d'Italia and 2023 will be my final season as a professional cyclist.
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