The former England, Portsmouth, Aston Villa and Nottingham Forest midfielder has endured a wretched time with injury during his stay at Leeds.
The 35-year-old missed virtually the whole of last season with an Achilles injury before suffering a groin strain this season.
"Steve has played his last game for us," saidKen Bates. "Discussions are taking place with a view to him retiring on health grounds.
"To be fair to the lad, he has had wretched luck with injuries, but life must move on."