The 39-year-old will pad up for the last time, should he be selected, when the clash against England gets under way on Sunday, ending months of speculation about his future.
It will be an 88th Test for the classy left-hander, culminating his Test career where it began after making his debut at the Sydney Cricket Ground in 2011, also against England.
“I’m here to announce I will be retiring from all international cricket after the SCG Test match,” he said at an early morning press conference at the ground.
“I’m a proud Muslim coloured boy from Pakistan who was told that he would never play for the Australian cricket team. Look at me now, and you can do the same,” he added.
“As I walk off for the last time. I do so with gratitude and peace.”
Khawaja immigrated to Australia from Islamabad as a child, battling the odds to become the country’s first Pakistan-born national player.
At one point, he was the only Asian first-class player in Australia and is credited with opening doors for others.
Khawaja has so far plundered 6,206 runs with 16 centuries and 28 half-centuries, averaging 43.39.
He smashed a career-high 232 against Sri Lanka a year ago, but has not made three figures since.
The current Ashes series has been a roller-coaster ride.
He injured his back in the first Test in Perth and was replaced as opener in the second innings by Travis Head who blasted a match-winning century.
Khawaja did not feature in the next match at Brisbane and was omitted from the team for the third Test in Adelaide, only to get a lifeline when Steve Smith dropped out ill just before the toss.
He came in at number four and hit 82 and 40 before making 29 and 0 in the fourth Test at Melbourne.
“I’m glad I get to leave on my own terms, with a little bit of dignity, and go out at the SCG where I love,” he said.
“But the start of the series was a pretty tough time. Then going into Adelaide and then not being picked initially for that game was probably a sign for me to say ‘all right, it’s time to move on.’
“I thought it’s a good time for a transition to happen. So I was always looking forward making sure that I left when I felt was the right time for me, but it was also the right time for Australian cricket.”
Khawaja also played 40 one-dayers and nine Twenty20 internationals. (AFP)
