The Daily Mail says Stubbs will announce his retirement today at the age of 36 after failing to recover from a serious knee problem picked up last season.
And after speaking to medical staff he has opted to quit the game after 18 years to leave Rams boss Paul Jewell without one of his most experienced squad members.
Jewell said: "It's a real shame because Alan isn't just a great pro and a terrific player but a leader and a great human being.
"He's had a magnificent career and has every reason to be immensely proud of what he's achieved in the game, especially considering some of the adversity he's had to overcome."
Stubbs, who has twice beaten testicular cancer, began his career at Bolton in 1990 and made just under 600 appearances for five clubs.