The former Australia captain has scored 13,366 runs in 167 tests - the second highest haul in the long history of the game - and stands behind only the great Don Bradman in the ranks of Australian batsmen.
"A few hours ago I let the boys know of my decision to make this test my last," Ponting, who turns 38 next month, told reporters.
"It's a decision I thought long and hard about. It was based on my output and my results in this series so far. It hasn't been what I expect of myself and certainly not the level required of a batsman in the Australia team.
In Image: Australian Test cricketer Ricky Ponting announces his retirement during a press conference on the eve of the third cricket Test between South Africa and Australia in Perth on November 29, 2012.