Frenzied speculation has surrounded the motorsport legend in recent weeks, with unconfirmed reports that he could be joining McLaren.
But as he ceremoniously opened the fishing season on the River Dee in Potarch, Aberdeenshire, he confirmed he would not be returning to the sport.
He said: “What they didn’t realise when I was invited here was that the world’s press was trying to find out if I was retiring or not. This is the busiest time of the year for Formula One and I said I would come along and open the River Dee.
“If they had put two and two together they would have realised they had a scoop and I was definitely retiring.”
He says he is going to take the next year to enjoy fishing and see what life brings.
“I’m looking forward to it but I’ve got no other plans. It’s a fantastic honour to do the ceremonial opening of the River Dee. It’s a river I’ve never had a chance to fish before because it is predominantly known as a spring river and in the spring I’m normally trying to sort out a Formula One car in Spain.
“So February, March and April are never good months for me to go fishing – but this year is different having stopped.”
Ross Brawn stepped down from his position as team principal of Mercedes in November’s, prompting huge speculation about his future in the sport.
It was thought that he would step into the role of CEO of McLaren Racing, newly created by Ron Dennis.
Michael Schumacher won five consecutive world titles from 2000 to 2004, as well as six constructors’ championships on the trot from 1999.
Brawn then took a six month break from the sport in 2006 after he left the Italian team, and then joined Honda.
He bought out the team in 2008 when Honda decided to bow out of F1, and renamed it Brawn GP. The team, now taken over by Mercedes, is best known for piloting Jenson Button to the 2009 drivers title, and for clinching the constructors championship. By Jessica Murphy