The 36-year-old Manchester United legend, a lifelong Latics fan, hinted a couple of years ago that he could end his illustrious career with the League One outfit.
Former England star Scholes said: "Had I still felt great physically, I would have probably played on and Oldham would have been a possibility.
"The decision I made to retire was just the way I was feeling. If I couldn't go to another club, play well and contribute, I didn't see the point of carrying on."
Instead, he will stay on at Old Trafford in a coaching role after a 676-game career with the Red Devils that brought 10 league titles.