A member of the club's Premiership title-winning squads in 2009 and 2010, and a try-scorer in the Heineken Cup final against Leinster Rugby in 2009, Woods made 70 appearances in his four seasons with Tigers.
Woods, 30, said: "It is a very difficult decision to stop playing, but I have enjoyed playing the game professionally and Leicester Tigers is a great club. The coaching staff here showed a lot of faith in me and gave me the opportunity to win trophies, which is what every player wants to do.
"I would like to thank everyone at Tigers for their support in my time at the club and I wish them well in the new season."
Tigers Director of Rugby, Richard Cockerill, said: "Ben has been a very valuable member of the squad at Tigers for the last four seasons. He enjoyed some of his best form in a Tigers shirt and started Premiership and European Finals in his time here.
"It is unfortunate for any player when injury dictates the time of their retirement. We wish Ben well for the future and thank him for his service to the club."