Krakouer began his career with the Power, playing 40 games from 2007 to 2010, before joining the Gold Coast Suns for the 2011 season. He played 13 games in the club’s inaugural season, before retiring from the game due to personal reasons.
He then returned to football with the Power in 2015 and played 29 games over the past three seasons.
“Nathan has played some outstanding football for the club,” Port Adelaide list manager Jason Cripps told the club’s website.
“Despite limited opportunity at AFL level this season Nathan played a significant role as an experienced player helping the Magpies win through to the SANFL Grand Final.”
The 29-year-old’s career has not been without controversy, with Krakouer involved in several off-field incidents.
Just last month Krakouer smashed the windscreen of a taxi following an argument with the driver after he had been drinking with friends.
Krakouer’s retirement is the Power’s first list change of the off-season.