While the Panthers didn't make an official announcement, the team posted a picture of Davis on its Twitter page with the word "Respect".
In an interview with NFL.com, Davis said he will hang up his cleats to spend more time with family.
Earlier in the week, Davis said he would play a lesser role on the team in 2018 because of the younger players. "Like, 'This is how long they want me here for.' This is how much time I have to dedicate to this organization to try to win a Super Bowl, and that's my mindset".
Davis had said this week that he expects his role to be reduced next season, and he anticipated that it would be reduced further in 2019. He overcame a trio of torn ACLs in his right knee to play 93 games over the last six seasons, earning Pro Bowl honors in 2015 and 2016.
Davis was a first-round (14th overall) draft pick by the Panthers in 2005 out of the University of Georgia.
Davis is a two-time Pro Bowler and the 2014-15 Walter Payton Man of the Year.
He also has only missed three games in the last six seasons, following his third ACL fix.
He finished 2017 with 76 tackles (five for loss), 2.5 sacks and seven QB hits.