The Wales international and Leicester player has been forced to admit defeat after a struggle with knee and back injuries.
The Foxes signed Jones from Leeds for £3m in December 2000, but he has not played for them since January 2002.
His last game was in Wales' 2-0 defeat to the USA in May last year, when the 13-cap man got a red card.
"I've had every possible treatment I was recommended and even went as far as having surgery on my back which had a risk of paralysing me from the waist down," Jones told BBC Wales Sport.
"Any normal person would probably not do that, but for me I would do anything to get back playing the game love. When I sat down with the surgeon three weeks ago I was nearly in tears.
"Everything I had ever dreamed for has been taken away from me. I have lived my dream because all my ambitions were to pay football and I achieved that. It was fantastic and I just feel that a couple of weeks ago I was woken up from my dream and someone wouldn't me go back to sleep.
"I've tried for so many months to fall back into this dream of being a football player again but unfortunately I can't. I've got to accept it and be grown up about it and not feel sorry for myself. I've got to get on with it and make something exciting of my life again."
We at LeedsUnitedMAD wish Matthew all the best.