Pirlo won the World Cup in 2006 and was Italy's outstanding player in last summer's European Championship where they lost to Spain in the final.
Pirlo, 33, said: "In 2014 I will stop playing for the national team, and I think that the World Cup will be my last appointment with the blue shirt of Italy - space needs to be given to younger players.
"I will carry on playing club football as long as I am passionate and feel like an important player, after which point I will be the first to get myself out of it."
The Juventus midfielder drew particular plaudits for his virtuoso display against England in the quarter-final in which he scored a superb chipped penalty in the shoot-out.
Pirlo has also had a stellar club career in Italy, winning two Serie A titles, two Champions Leagues and the World Club Cup in 10 years at AC Milan, before playing a key role in the rebirth of Juventus.
He has made 82 appearances in all competitions since signing for Antonio Conte's side in 2011, and the reigning Serie A champions will make it two titles in a row on Sunday as long as they do not lose at home to lowly Palermo.