The 32-year-old, who played 125 Tests for the Wallabies - 69 of them as skipper - announced his immediate retirement on social media.
"What a ride! My Olympic journey has come to an end, and with it, my Australian rugby career," Hooper said in a statement via social media.
"To the Aussie Sevens team, I wish you all the best, you’ve been an awesome, helpful, and talented group of athletes to be part of.
"As for my time in Australian Rugby, I’m grateful to my family and friends for their unwavering support throughout.
"We’ve shared an incredible journey, filled with unforgettable experiences, challenges, and memories. Thank you."
Hooper became the youngest-ever Wallabies captain in 2014 at the age of 23. He went on to play in the side that won the 2015 Rugby Championship and reached the final of the World Cup the same year.
He also figured in the 2019 World Cup but missed two months in the summer of 2022 when he was treated for depression.
He returned to play again for the Wallabies, taking the field for the last time in his final Test in South Africa in 2023.
Hooper was jettisoned by incoming coach Eddie Jones for the 2023 World Cup, prompting the move to Sevens in a bid to make it into the team for the Olympics.
"Michael has been an incredible player and ambassador for our sport," said Australia Rugby CEO Phil Waugh in a statement.
With his club NSW Waratahs, where he spent 10 seasons after starting out at ACT Brumbies, he won the 2014 edition of Super Rugby.
