The 34-year-old is the 10th most-capped player in the history of the game and his tally of 120 Test appearances is second only to George Gregan among Australian players.
Moore, who also steps down as Wallabies captain, made his debut against Samoa in 2005 and played at three World Cups for the side.
"It was a very tough decision but you talk to people who've done it and they say 'you know when it's time' and I think I've got that feeling," the hooker told reporters.
"I just thought now was the right time, finish the year strongly and let the next crop of players take the team forward.
"I just didn't feel I could give it all I had until [the] 2019 [World Cup]. I think it's a smart decision personally and also for the team, which at the end of the day is my priority."
Flanker Michael Hooper is set to take over the captaincy of the Wallabies, according to Australian media.