The 36-year-old Austrian, who now competes for the Netherlands, made a comeback last season after ending his career five years earlier. But after just three races, he tore the cruciate ligament in his left knee.
The eight-time overall World Cup winner, and double Olympic gold medalist, tried to come back once again - but a new injury means there isn't enough time.
"The truth is that it's not possible. The speed it's at now is not enough for World Cup level," he says in a video on social media.
Hirscher says a calf injury forced him to take a two-week break over the Christmas and New Year holidays.
"The haters are going to love this. I'm not happy about the situation, I'm sad it's not going to happen this year," he says.
However, Hirscher says he hopes to be back next season.
Marcel Hirscher's 67 World Cup victories are the second most on the men's side behind Ingemar Stenmark's 86.
