The 40-year-old joined Man City from West Brom back in 2019, initially on loan before making the move permanent two years later.
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Carson made just two appearances in his six years at the club, one in the Premier League and the other in the Champions League.
Beloved by his teammates and an important member of the dressing room, Carson took to social media to bid farewell to football.
Posting on Instagram, he said: “After an incredible journey between the posts, it’s time to hang up the gloves.
“Football has given me everything — memories, friendships, and moments I’ll never forget. Thank you to every teammate, coach, fan, and club that’s been part of the ride. It’s been an honour.”