Kovac had been one of the pivots of Croatia's national team in the past decade before quitting international football in 2009. After spending the second of two seasons with Dinamo, the Croatian champions, the much-travelled Croat has decided enough is enough.
"It's over, that's enough," the 37-year-old Kovac was quoted as saying on the club's website. "I'm a little tired, I'm not getting any younger and finally I'm lacking a little motivation. I don't think I can contribute much to Dinamo."
Berlin-born Kovac spent most of his career outside Croatia. He had spells with Hertha Berlin (1992/95), Nuremberg (1995/96), Bayer Leverkusen (1996/2001), Bayern Munich (2001/05) in Germany, in Italy with Juventus (2005/07) and again in Germany with Borussia Dortmund (2007/08).
He retires with 80 international caps.