
"We had obviously hoped Sweden's greatest player down the years would play on for another season," Helsingborg's director of sport Jesper Jansson told Helsingborg's official Web site.
The news comes nine days after the 38-year-old striker quit the Swedish national team for the second time in his career following their failure to reach the World Cup finals.
"But we respect Henrik's decision and are incredibly grateful for everything he has done and proud to have been a part of his fantastic career."
Henrik Larsson has been a prolific striker throughout his career, scoring over 300 goals during spells with Feyenoord, Celtic, Barcelona, Manchester United and Helsingborg. He was also capped 106 times by Sweden, netting 37 times.
Henrik Larsson's final game for Helsingborg will be at Elfsborg on November 1.
Meanwhile, former England national coach Sven-Goran Eriksson has ruled himself out of the running for the vacant Sweden coaching job.
Eriksson had been one of a number of names linked with the post following the resignation of Lars Lagerback nine days ago.