"This decision was not an easy one. It has proven tough for me, especially physically, to come back to where I feel like I belong," said Baghdatis whose ranking has slumped to 138th in the world and who was handed a wild card to play in this year's Wimbledon which starts on July 1.
"Even though my mind wants to do it, the limits of my body have prevented me to maintain and play at a consistent high level as I expect from myself.
"Especially the last two years have been very difficult for me with recurring injuries and pain."
Baghdatis, who lost to Roger Federer in the 2006 Australian Open final and fell to Rafael Nadal in the Wimbledon semi-finals later that same year, won four ATP titles in his career.