Haldane has not fully recovered since breaking his leg in two places against Tranmere in August last year. The injury left the 27-year-old with substantial cartilage damage, which doctors have deemed as irreparable.
"I am devastated that I have had to make this decision and it is one I have thought long and hard about," said Haldane in a statement via the club's official website.
"I would like to thank my family and friends for their continued support throughout the last couple of years, as well as the manager and the medical staff at Port Vale, in addition to all of the supporters. Everyone's kind thoughts are appreciated."
Vale manager Micky Adams added: "The thoughts of everyone at the club go out to Lewis. Throughout the time I have worked with him, he has been a consummate professional and we have done everything in our power to help to return to fitness.
"Unfortunately, the injury he suffered was too severe. This is a difficult time for Lewis and we are working with him to help him prepare for his future."