"I feel it's time to step aside," the attacking star writes on social media.
Dzeko urges all supporters to come to the farewell match in Zenica in a month.
"I hope you will be there against Sweden so we can share another experience," he writes.
Dzeko has played the most matches (151) and scored the most goals (73) in the history of the Bosnian men's national team.
Dzeko recently extended his contract with Bundesliga side Schalke by one year. He has previously played for Manchester City, Roma and Inter, among others.
