Roberts, 29, has spent nearly a year in the treatment room while with the Saddlers suffering with back, knee and calf injuries.
Manager Chris Hutchings confirmed the players decision saying:
"Stephen has decided he's had enough with the amount of injuries since he's been at Walsall and we've come to an agreement where he's decided to call it a day.
It's a sad day for Roberts as a player and a person. We as Saddlers fans had not seen the best of a player who was previously a Doncaster Rovers captain. Roberts is a rising artist who has no doubt found his painting as great comfort during a difficult 15 months with Walsall.
Signed by Jimmy Mullen, had we managed to have a fit Stephen Roberts there is no doubt he would have been a great asset to our defence.
This season he was limited to starts in only two matches but again injury flared up.