"That's the way it looks now, I'll call it a day," said the former Liverpool right-back.
"I was always a player that could be counted on to perform. I'm not able to do that any more."
Babbe was signed for the Reds by Gerard Houllier in 2000 and was a vital component of the treble side of 2001. Babbel only played one season for the Reds before being cruely sidelined with Guillian-Barre Syndrome. The defender did return to first team action in 2002/3 but was soon sold to Blackburn Rovers.