Neville, who joined the club from Manchester United in the summer of 2005, will take some time this summer before deciding on his next move but he revealed that his playing days are not over yet.
The 36-year-old became only the seventh player to reach 500 games in the Premier League on Boxing Day 2012, and he has made 303 appearances for the Toffees since leaving United, where he won six league titles, three FA Cups and a Champions League crown.
In a statement on Everton's official website, Neville said: "It's been an honour to play for and captain Everton Football Club. I've thoroughly enjoyed my time on Merseyside and will leave with immense pride.
"I would like to thank the manager, chairman, all of the staff and the players at Everton for their continued support during my time at the club.
"I'd also like to pay a special thanks to the fans, who have been amazing over the past eight years and Everton will always have a place in my heart.
"I want to continue to play at the top level as long as I physically can, and will be weighing up my options before making a decision on my next move. I'll now be doing everything I can to help Everton finish as high up the league table as possible."