The 31-year-old defender is set to begin a personal hearing on Monday to deny that he used "abusive and/or insulting words and/or behavior" against Anton Ferdinand in the match against QPR last October. Terry has been cleared of a charge in a court of law, but faces the FA's panel and has decided to curtail his international career.
"I feel the FA have made my position with the national team untenable," Terry said in a statement. "Representing and captaining my country is what I dreamed of as a boy and it has been a truly great honor. I have always given my all and it breaks my heart to make this decision. I wish Roy and the team every success for the future.
"I would like to thank the England managers who have selected me for my 78 caps. I have had great pleasure in sharing that honor with all the players that I've played with. I would like to thank them, the fans and my family for their support and encouragement during my international career."
Terry made 78 appearances for the national team since making his debut in 2003 against Serbia and Montenegro, and first captained the side in a World Cup qualifier against Poland.
The Chelsea captain will still play for the Blues in club soccer.
He added: "I now look forward to playing for Chelsea FC, and challenging for domestic and European honors, and I want to thank the fans and the club for their continued support."
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