He said: "The doctors all agreed it was in my best interests to call it a day."
Nottingham Forest paid Ipswich £3.5m for Johnson in January 2001. He made 165 appearances for the club and scored 50 goals.
End of the line for DJ
The 30-year-old striker has been out since the end of 2005 with a back injury that recent surgery has failed to cure enough for him to continue.