The left-back revealed on his official Instagram account on Saturday evening, the night before Shrewsbury's final game of the season at Crewe, that he was hanging up his boots.
The 33-year-old has spent two-and-a-half years at Town having been snapped up as a free agent by former boss and ex-Wolves team-mate Sam Ricketts. He made a total of 58 appearances in all competitions, including 16 this season.
But Golbourne had found himself frozen out under Steve Cotterill and has not featured for Town since February, and just twice in 2021, as Nathanael Ogbeta made the left wing-back role his own.
The former Wolves full-back, who played 92 games for the Molineux club including helping them to the League One title in 2014, is the first out-of-contract Town player to clarify his future ahead of a busy summer.
It is understood Cotterill is set for talks with all his players, those both out and under contract for next season, in the middle of next week.
But the former Bristol City manager's future plans will not include ex-Robins defender Golbourne, who said he will now focus on his building company.
In January, Shrewsbury players were reminded of their responsibilities regarding Covid-19 regulations after social media posts from Golbourne drew a backlash from supporters. The fallout came while the squad were recovering from a widespread breakout, which saw boss Cotterill absent for four months.
Bristol-born Golbourne, who started his career in the Robins youth set-up, said of his retirement: "I've decided to hang up my boots and draw for my business suit (Ok maybe a hard hat and steel toes).
"Been building a business for the past six years and it's now time for me to transition.
"Football has been an incredible journey both for me and my family. I've had some incredible experiences, worked with some amazing people, learned some valuable lessons and made some friends for life.
"Thank you to everyone that has supported or played a part in my journey. It's been a pleasure as well as a privilege.
"See you on the other side, Scotty G."