The Czech international, who earlier said he'll wait until the end of the season before making a final decision has now confirmed that this year will be his last as a footballer.
"In principle, I always decided to retire at the end of this season depending on how I was," Nedved was quoted as saying by Football Italia.
"Instead, I have now pre-empted that decision because of the way I feel inside. I have spoken a lot with my wife and we made this decision together.
"My wife is a little tired of it all and I have a lot to re-pay my family. I have to be with them more."
Nedved added that he wants to leave the Juve setup in order to provide more playing space to the club's new faces.
“I am enjoying myself a lot at the moment, but I believe that physically and mentally the moment has arrived to leave space to the youngsters," added the 36-year-old.
Bright History
Nedved, who kicked off his career at Dukla Prague in 1991, has scored 48 goals in over 200 games for Juventus since joining the Old Lady in 2001.
Before this, he enjoyed a successful five-year spell with Lazio, where he scored 33 goals in over 130 games for the Roman side.
In 2003, he was named as European football of the year after guiding Juventus to a Serie A title and the final of the UEFA Champions League.
He played 91 games for his country and was part of the Czech Republic golden team, who lost the Euro 96 final to Germany.
Watch Nedved's best moments