The defender has opted to quit to follow business interests outside of the game after 16 years as a player.
Chambers made 108 appearances for the Saddlers after joining from Hereford in 2012, having started his career at West Brom, and helped the Saddlers to their first ever appearance at Wembley in March when they lost 2-0 to Bristol City in the Johnstone’s Paint Trophy final.
“It’s a decision that I have thought long and hard about,” said the 34-year-old, who also played for Leicester and Doncaster. “I’ve taken advice from various people as well as family and friends and I have decided that the time is right for me to have a change of direction.
“I have business interests away from football, particularly my new venture, My Farewell, and it is time for me to pursue those. I simply couldn’t do both; it wouldn’t have been fair on the club or myself for me to remain here and not give it my full attention.
“I have been fortunate to have enjoyed a long career in the game where I have played alongside and against some fantastic players and been involved in some big games.
“I gained promotion into the Premier League twice with West Bromwich Albion, once with Watford and have also played in some memorable Cup games, including that Wembley appearance for Walsall in March.
“I’ve got some great memories to look back upon and leave Walsall having had a fantastic time over the past three years.”