The Melbourne superstar has long been regarded as a pioneer of the women's game, serving as captain of the Demons since the club's inaugural season.
Despite continuous speculation around the future of her career in the game, Pearce refused to confirm if season seven would be her final after hoisting the premiership cup.
Speaking to the media on Wednesday though, Pearce confirmed that she had played her last game in the competition.
"I'm closing the chapter on my playing career with a very full heart," Pearce said.
"Not just because we ticked the premiership box in the season just gone but because of a career that I've loved and cherished.
"I'll miss the whole program and the players and staff and people that I've got to share the journey with immensely and that's probably been the hardest thing in making the decision."
Melbourne CEO Gary Pert thanked Pearce for her time and ongoing legacy at the club.
“Daisy has been an exceptional leader, teammate and player, and she will leave an ever-lasting impact on our club,” Pert said.
“To see Daisy, alongside Mick, lifting our first-ever AFLW premiership cup last year was a moment we had all dreamed of – and one I'm sure we will remember forever. For Daisy, it caps off a remarkable journey and career.
“To Daisy, Ben, Sylvie and Roy, thank you. You will forever be part of the Melbourne Football Club family, and all hold a proud and special place in our club's history.”