He wrote in a post: "After 23 incredible years as a footballer, I have decided now is the right time to retire from playing".
Essien and Terry played together at Chelsea, helping the Blues win the 2012 Uefa Champions League in a dramatic final against Bayern Munich.
Arsenal legend and former France worldwide Thierry Henry is set to finally realise his ambition of calling the shots as a club manage after he impressed the owners of English Championship side Aston Villa in an interview for their top job.
Terry constantly attracted the strong backing of Chelsea fans who have a banner at Stamford Bridge which reads, "Captain".
Arsenal legend Martin Keown has insisted that Thierry Henry has always had the tools to become a great manager, amidst reports of him being close to becoming the next Aston Villa boss.
Derby County manager, Frank Lampard has reacted to the retirement of Chelsea legend, John Terry from football.
Rooney is one of a number of players and ex-players to pay tribute to the 37-year-old after he announced his decision to hang up his boots on Sunday evening.
Right from the outset they have given me total support, on and off the pitch, and I have a tremendous bond with them, he added.
"Both men are winners and I hope the Premier League's best striker and defender prove a successful combination in the dugout".
He also referenced his time at Villa by saying: "It was a privilege to represent such a renowned football club with great fans".
The central defender has been without a club since leaving Championship (second-tier) side Aston Villa following their playoff defeat by Fulham at Wembley Stadium last season.
Meanwhile Lampard also backed his former Chelsea team-mate Terry.