Thompson's tenure in Queensland comes to an end after 106 games in over a decade, having seen his career riddled with injuries.
The 31-year-old leaves the Suns as the longest-serving player in the club's history.
After ongoing knee issues that hampered his availability in recent seasons, Thompson has decided to hang up the boots.
“It's been such a long journey with so many ups and downs and wonderful people that come into your life,” Thompson said.
“I'm super grateful to the SUNS for giving me that opportunity so many years ago as a young kid and having stuck with me all this time, it's pretty hard to put into words what that means to me.
“I've obviously had such a long career with the SUNS and have had my fair share of injuries including some really significant ones.
“Towards the end of last year it was getting hard to back up games and keep my body moving and it just felt like the right time for me and my family to move on to the next chapter of our lives.
“Looking back I was a kid that didn't think I would get drafted, so to go to where I am now after 14 years, I'm very proud of myself and the work I've put in and very grateful to the people that have helped me get this far.”
Thompson made his debut with the Suns in 2011 and would earn 22under22 honours two years later.
He would play three games this season, making a return to the field after 1379 days on the sidelines in Round 8 against Sydney.
Further injuries would impact the veteran defender's season, seeing his year end after Round 10 when he was subbed out against the Bulldogs.