The nuggety batter has spent an incredible 21 years in the professional game and has been playing his trade at Essex since his international retirement in 2024.
On Wednesday, he released a lengthy statement on their website revealing his future.
"I feel it's the right time for me now," said the 39-year-old.
"I'm not getting any younger, 39 years old, and I've got a lot of things going on back home with regards to a young but growing-up-very-quickly family. It's the right time for me now to be present at home and be there for my partner and my kids.
"It's been a great journey so far. It's not done yet, but at the end of the season, I will be retiring.
"I was fortunate enough to represent my country for twelve years and then the responsibility of captaining [South Africa] - that's one of the proudest moments of my career. If you look back at the journey of where I have come from, I don't think many people would have given me a lot of hope of having a career [in cricket], let alone one that spans over two decades.
"There's been a lot of proud moments during my time. Obviously, beating England at Lord's as captain is one of them. That stands out quite profoundly, purely the way we played cricket and the style and brand in which we played it. The transitioning phase, we started as seventh in the World Rankings when I took over and when I ended, we were second.
"When I joined Essex, I felt the pressure of having to replace Sir Alastair [Cook], but I knew that I needed to bring my own style of cricket. I've always had pride in my performances and, naturally, I play this game to win. Personal performances have never been something I've focused on. Every moment I've had on the park with the Essex boys, when we've won and had successes, has been an awesome highlight for me during my time at the Club.
"Looking ahead, I'd ideally have a sabbatical from cricket. It's been a long journey, and I've been on the road for quite a long time. I've got my kids back home and I now feel it's my duty to stand up and play for them. I can only picture that when I land [back home], it's going to be all hands-on deck, but being a father is something I have really enjoyed.
"I'd hope people would remember me for playing the game hard and to win, someone who always took their cap off in defeat and shook the opposition's hands with respect. Someone who was hardworking and hungry and would bleed and break bones for the team and do anything to win."
Elgar made a name for himself in the Test arena as a gritty opener, where he scored 5347 runs with 14 centuries and 23 fifties at an average of 37.65. His highest score of 199 came against Bangladesh in 2017.
After standing in for Test captain Faf du Plessis on several occasions, Elgar was finally handed the reins full-time in 2021. After 18 Tests in charge, he concluded his Test career with a drawn series against India in South Africa in 2024, where he was announced player of the series following his superlative 185 in the first Test.
What's more, Elgar is one of only two Test openers in the history of cricket (the other being Desmond Haynes) to have carried his bat three times.
Veteran leg-spinner Graeme Cremer has been recalled to Zimbabwe's T20I squad for the upcoming tri-series against South Africa and Namibia, with Sikandar Raza named captain of the 15-man squad.
Namibia have named a 16-man squad blending experience and youth for the inaugural T20I tri-series against South Africa and Zimbabwe in Windhoek from August 28 to September 6.
Pat Cummins has welcomed Australia's long-awaited return to South Africa, describing the Proteas as a "really strong side" as the visitors begin preparations for a three-Test series in October.
South Africa's preparations for the T20I tri-series in Namibia have suffered an early setback after all-rounder Jason Smith was ruled out with a right adductor muscle strain.
