The 213 centimetre or 7 foot 1 tall centre made the announcement in a video he posted on his Twitter feed earlier today.
On the court, 'Shaq' won four championships as well as the league's most valuable player award.
But he's just as well known for his larger-than-life personality.
Michael Edwards has this report.
MICHAEL EDWARDS: After 19 seasons, almost 30,000 points and more than $290 million in earnings, Shaquille O'Neal used the social network tool Twitter to tell his fans that he was quitting basketball.
SHAQUILLE O'NEAL: We did it, 19 years baby. I want to thank you very much, that's why I'm telling you first, I'm about to retire. Love you. Talk to you soon.
MICHAEL EDWARDS: Big in stature and equally big in personality, Shaquille O'Neal's impact on the sport rivals even that of Michael Jordan.
(commentators calling basketball game, crowd cheers)
GAME CALLER: Get out of my way! I'm comin!
MICHAEL EDWARDS: He started his NBA career with the Orlando Magic but he won three of his championships with the LA Lakers.
He went on to win another with the Miami Heat, before stints with Phoenix, Cleveland and finally Boston.
His long-time rival and friend, Charles Barkley, says Shaq picked the right time to retire.
CHARLES BARKLEY: Well you know what, I'm glad he decided to retire because it was frustrating for me, because he'd been such a good friend to me for such a long time, I'd hate to see him struggling up and down the court this year.
MICHAEL EDWARDS: Charles Barkley describes him as a 'giant among giants'.
CHARLES BARKLEY: You know he's a wonderful person, he's been one of the greatest players ever and you know I tell people Shaquille O'Neal I played in the NBA for 16 years; Shaquille O'Neal is the only guy that I ever said, wow that's a big dude. From the first time I saw him he's the only guy.
You know I played against Mark Eden, I played against the Manude (phonetic) and the Dikembe Mutombo but Shaquille is the only person I played against, and I said man that's a big dude right there. But he was great, he was a great, great player, great, great personality and the NBA is losing a giant.
MICHAEL EDWARDS: To Bill Russell, a former NBA great who won 11 championships, Shaq's skills on the court were matched by his qualities as a person.
BILL RUSSELL: His family can be extraordinarily proud of the way he turned out, because he's an intelligent, likeable, talented young man and I just can't say how much I wish him well in whatever he goes into now, because this is the beginning of the rest of his life.
MICHAEL EDWARDS: But it's hardly going to be the last time we hear from Shaq. During his playing career he wasn't just a basketballer, at times he was an actor, a teacher and even a rapper.
(excerpt from rap song)
MICHAEL EDWARDS: And Charles Barkley regards him as a consummate expert at dealing with the public and the media.
CHARLES BARKLEY: You know there is a certain responsibility that goes with being a great player and being the man that's the face of the league. You have to do the press and you have to be nice to the fans, that's part of it. I tell people, they don't pay you all that money just to play.
MICHAEL EDWARDS: Shaquille O'Neal also had a lot of nicknames; among them, The Diesel, Shaq Daddy, and the Big Aristotle ..and when he moved to the Boston Celtics he dubbed himself the Big Shamrock.
Not only was it in his nature, Shaq says it also makes better business sense to be funny.
SHAQUILLE O'NEAL: I always been a jokester and in college at LSU a guy told me that big men couldn't sell, so right before I entered the NBA I looked at all the top people, which was Magic at the time and Jordan at the time and I took a little bit of what they had and added my own stuff into it, stirred the pot and wallah, you get The Shaq.
BRENDAN TREMBATH: Shaquille O'Neal ending Michael Edwards's report.
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