The 27-year-old Rice ends his career with 243 receptions for 3,592 yards and 30 touchdowns in 81 games played with 57 starts.
"After careful consideration and seven wonderful years playing in the National Football League, including the last three for the Seattle Seahawks, I have decided to retire from playing in the National Football League," Rice said in a statement. "I have enjoyed my experiences with all of my coaches, teammates and passionate Seahawks fans. I take great pride in knowing I was one of the players signed to help build the foundation of the team that ultimately won the Super Bowl."
Rice was originally drafted in the second round (44th overall) in the 2007 draft by the Minnesota Vikings and played four seasons in Minnesota with 26 starts in 48 games played. He totaled 146 receptions for 2,129 yards and 18 touchdowns with the Vikings and was voted to the Pro Bowl after the 2009 season, when he recorded career-highs in receptions (83), yards (1,312) and touchdowns (8).
Rice signed with the Seahawks as an unrestricted free agent on July 29, 2011 and started 31 of 33 games played. Rice started all 16 games for the first time in his career totaling 50 receptions for 748 yards and seven touchdowns in 2012.
Rice's 2013 season was cut short after eight games when he suffered a knee injury at St. Louis on Oct. 28. He recorded 15 receptions for 231 yards and three touchdowns during Seattle's Super Bowl-winning season.
Rice recently invested in Wingstop and opened the first of five franchises in the Seattle area in June.
"The entire organization would like to thank Sidney for his leadership over the past three seasons," general manager John Schneider said in a statement. "His time as a Seahawks player displayed the core values that Pete and I aimed to bring to the program and Sidney is a true champion. We wish him nothing but the best in his future endeavors."