"I thought about it and, after being left out the national team again ... I realised there was little scope for me to show how I could hold down the position," said a disappointed Frey.
He added that he wanted to concentrate on his club career. Frey was overlooked for a place in the France squad for their 3-2 victory over Sweden in a friendly in Gothenburg on Wednesday.
There is tough competition for the No1 jersey in Domenech's outfit, with both Steve Mandanda of Marseille and Lyon's Hugo Lloris fighting for it.
Frey, 28, moved to Italy in 1998 and had played for Inter Milan, Verona and Parma, joining Fiorentina in 2005.