She was also part of the Japanese lobbying team that persuaded the International Olympic Committee to retain wrestling at the Tokyo 2020 Games and has been coaching the Japanese national team in the build-up to their home Olympics next year.
Her decision to retire so close to Tokyo 2020 surprised many of her fans on Twitter.
"Such a shame as I was looking forward to seeing you on the Tokyo 2020 wrestling mat," one user commented on her post.
"I was moved and encouraged many, many times by your fighting sprit," another said.
Saori Yoshida, the freestyle wrestler is a 13-times world champion, most recently winning the 53kg category in Las Vegas in 2015.