The 32-year-old Evian midfielder believes now is the time to stop, before qualifying starts for the 2014 FIFA World Cup.
The former FC Copenhagen, Schalke, Sevilla, Juventus and Liverpool midfielder said: "I am happy and very proud of my career with the national team.
"I was only 22 when I was at the World Cup finals in 2002 and can look back on many exciting matches and four tournaments with the national team.
"My decision is not due to lack of ambition after 10 years as a midfielder. There are younger players who stand before me, and so my role for the team is no longer the same.
"I therefore think it is a fair decision to leave my place in the squad to the new forces, before the team starts the new qualifying tournament.
"I will miss our very special unity in the squad and wish my team-mates and coaches all the best for the future.
"And I also thank
After 92 caps and six goals, Poulsen discussed his decision with
Olsen told the Danish FA's official website, www.dbu.dk: "Christian has had an inestimable impact on the national team in all of his 10 seasons as a midfielder.
"He has helped to win many decisive balls and matches for us. Also off the pitch, his professional approach helped to lift the intensity and level of competition in the squad.
"It has obviously not been easy for him to lose his permanent place in the team, but he has acted honestly and professionally throughout.
"Besides his national team career he played for some of the biggest clubs in the major leagues and in the biggest club competition, the Champions League.
"He was helping to push other players on when he came into the team 10 years ago, and now he takes as an understandable and logical decision for them. We have much to thank him for."
Wellington Phoenix will play two A-League home games during the 2013-2014 season, away from Westpac Stadium, in Napier and Christchurch.