Clemence, 65, steps down from his role as Head of the National Teams after joining the Football Association in 1996.
He started with the FA as goalkeeping coach for Glenn Hoddle and continued in the role under every England manager since.
Clemence later took on the wider role across all England development teams, which naturally helped the progression of players from U16 level through to the senior team.
As a player during a 14-year stint with Liverpool, Clemence won the European Cup three times along with five league titles, the Uefa Cup, FA Cup and League Cup.
Moving to Tottenham in 1981, he added another FA Cup and with England, competing for the no 1 shirt with Peter Shilton, he earned 61 caps.
"I have been lucky to have had 47 years in this wonderful game, of which 17 of these have been spent at The FA," said Clemence on the FA's website.
"I have been fortunate to meet and work with some wonderful people at all levels throughout my time here.
"I have enjoyed working with great players and also seeing young players start in the U16 development team and progress through those teams to the senior side.
"There are some frustrations working in The FA, but it is full of hard working dedicated staff who are all trying to improve the state of the game.
"I leave The FA with many happy memories that will stay with me for the rest of my life."
Sir Trevor Brooking said: "Ray has been an excellent ambassador not only to The FA, but to football in this country, and in particular in elevating specialist courses for the goalkeeping position.
"His standards both as a player and as a coach have been relentlessly high, and particularly in my time I have seen his impact on a succession of young players who have come through and established themselves at the highest level.
"We wish him the very best in retirement, and he will always be welcome back here at Wembley."