The 38-year-old had been linked with a move to MLS and former club Kaiserslautern over the past few months, but has opted to retire instead and take up a position with Germany’s national team.
The The All-time Germany top-scorer will be following an individual education and traineeship under national team coach Joachim Low and sporting director Hansi Flick with an eye on a future coaching career, while also joining Low’s backroom staff.
“I enjoyed my biggest successes with the national team. It was a great time and unforgettable for me. That’s why I am happy to return to the DFB,” Klose told the DFB website.
“Over the past few months, the idea of staying on the pitch in another position, as a coach, got into my mind. I already enjoyed developing tactics, preparing for games and reading the game during my playing days.
“I am grateful to Jogi Low and Hansi Flick that they are offering me this opportunity.”
Klose started his professional career with Homburg and also wore the jerseys of Kaiserslautern, Werder Bremen, Bayern Munich and Lazio.
He enjoyed his biggest successes with Bayern, where he won two Bundesliga titles and two DFB-Pokals. The striker won the Bundesliga top-scorer award in 2005-06.
The attacker made 137 appearances for Germany – with only Lothar Matthaus winning more caps – and scored an impressive 71 goals to become his country’s all-time top goalscorer.
He won the World Cup in 2014, having finished as a runner-up in 2002. Klose is also the all-time top scorer at the World Cup with 16 strikes over four tournaments.