The 33-year-old, who won the Vuelta in 2018, retires on a high after claiming the Giro d'Italia title last May to add to his six career stage wins in the three-week race.
Yates, the twin brother of Adam Yates, also grabbed two stage wins on the Spanish grand tour as well as three on the Tour de France, where his best general classification result was fourth in 2023.
"I am deeply proud of what I have managed to achieve and equally grateful for the lessons that came with it," Yates, who served a four-month doping ban in 2016, said in a team statement.
"While the victories will always stand out, the harder days and setbacks were just as important. They taught me resilience and patience, and made the successes mean even more."
Yates started his career on the track, winning the points race gold medal at the world championships in Minsk in 2013.
