The 32-year-old former Warwickshire seamer's last first-team appearance for the Hove side came in June 2014.
The right-armer took 199 wickets at an average of 32.38 in 63 first-class appearances for Sussex.
"It's been a frustrating 18 months. On the advice of the club's medical staff, I have decided not to pursue my first-class cricketing career," he said.
Anyon joined Sussex ahead of the 2010 campaign and became a consistent performer for their Championship side.
He took 55 first-class wickets at an average of 32.45 in 2011 and a further 50 at 28.64 in 2013.
Anyon also made 1,086 first-class runs during his spell with Sussex.
"I'm very fortunate to have played my best cricket at Sussex," he added.
"I'd like to make a special thank you to the medical staff and the Professional Cricketers' Association for all their help over the past 12 months. I wish the club success going forward."
Sussex bowler James Anyon has announced his retirement after failing to recover from a knee injury.