Playfair suffered the injury in the Swans' round-14 loss to Richmond and, after discussions with club medical staff, he decided against another lengthy period of rehabilitation.
The 27-year-old former Geelong forward had battled a chronic hamstring problem for almost two years and missed all of the 2009 season after undergoing radical surgery to repair the tendon.
Playfair was delisted at the end of that season but won a reprieve when the Swans redrafted him as a mature-age rookie in December.
He worked his way back into the side to play five games this year, bringing his career total to 68 games over a nine-year career with the Cats (52 games over six seasons) and the Swans.
“When I found out I’d done some damage to my back it was a bit of a shock. At first I didn’t know what it meant for my season, and then I spoke further to the doctor and the physio and it looked like my season was over,’’ he told sydneyswans.com.au.
“I then had to make a decision about next year, and coming off the troubles I’ve had previously with hamstring injuries over the past couple of seasons, the back was another indication that my body is not up to it at this stage.’’
Playfair, who was drafted by Geelong at No.41 in the 2001 NAB AFL Draft, told his teammates of his decision on Monday night and will remain involved at the Swans until the end of the season.
Sydney Swans coach Paul Roos said the big forward had shown enormous character to make a comeback.
“In what has been a difficult time for Henry, he has certainly showed when he has played that he’s been a valuable member of the team,’’ he said.
“But more importantly he’s embraced the football club and become a very popular team member. He’s always been willing to help younger teammates and pass on his wealth of knowledge from many years of senior footy so he will be missed both on and off the field.’’
In an earlier interview with afl.com.au in May, Playfair said he knew he was on his last chance as a senior footballer.
"I realise that I could easily not be there. Footy's such a fine line. Any form of injury for me this year is going to be pretty crucial to the rest of my career so I can't look too far ahead. That's honestly where I'm at," he said.
"A couple of bad games or a couple of bad quarters could mean I'm out of the side and struggling again. I'm just trying to enjoy the challenge at the moment."
