Kerr becomes the sixth Eagle to retire in 2013 following Andrew Embley, Adam Selwood, Mark Nicoski, Ashton Hams and Brad Dick.
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Kerr announced his intention to retire to his teammates after the Eagles final match of 2013 but it took six weeks to negotiate contractual arrangements with the club before it could be made public.
Kerr told the Eagles website that the decision to retire was not easy.
"I've been lucky to be able to wake up every day and do what I love, but lately it has become harder to get my body to carry out my mind’s instructions," Kerr said.
"It was hard to come to terms with the fact that I probably wasn't going to be able to play to the standard that I wanted, but I recognise that my best football is past me and it's time to step aside to let the new generation through.
"I've had the time of my life at this football club and I've made friends that I'll keep until the end of my days."
The 30-year-old played just 10 matches this season due to various injury problems. He missed the first two rounds after a late start to the pre-season following damage to his kneecap late in 2012.
Kerr missed the round seven trip to Brisbane due to soreness and suffered cracked ribs against Hawthorn in round 13. He played in round 14 against Essendon but ongoing knee issues forced him to the sidelines once again.
Kerr played two more matches in the WAFL before being sent for early surgery on his knee in the hope that he would be right for the pre-season.
But following several meetings with football operations manager Craig Vosso and the Eagles medical staff, Kerr decided he could not play on in 2014.
Vozzo believes Kerr leaves the game as one of the Eagles greats.
"Daniel has been fortunate enough to achieve many accolades during his career and we take great pride in the football he had been able to produce over the past 13 years," Vozzo told the Eagles website.
"He has been an elite midfielder of the competition and set a high standard for his younger teammates to live up to.
“Daniel has been a terrific servant of this club and his skill and courage will be sorely missed, but always remembered by the club and our supporters.”
It is an unassuming exit for a player whose career was somewhat overshadowed by Chris Judd and Ben Cousins at the Eagles.
But Kerr's career has been nothing short of phenomenal.
He finishes on 220 matches. He finished second in the Eagles best and fairest in just his second year at AFL level in 2002 as a 19-year-old.
The eye-catching midfielder finished second in the 2005 Brownlow behind Ben Cousins. He was third in the Brownlow voting in 2006 and equal second in 2007 despite being ineligible in both seasons. Kerr was also named All Australian in 2007.
Kerr was an integral part of the Eagles 2006 premiership and was a key component of the famed centre-square quartet alongside Judd, Cousins and Dean Cox.
