The 29-year-old has taken the decision following medical advice following a concussion injury sustained in October 2018 when he was playing for Leicester Tigers.
Capped 42-times for Scotland, Denton admitted that there was a mixture of relief and devastation regarding the news.
However, with his family behind him and the experiences picked up across nearly a decade of professional rugby with Edinburgh, Bath, Worcester Warriors and Leicester, his next move is set to be in business.
He has already been preparing for his life after rugby.
Denton said: “My actual reaction at the time my neurologist told me it was no longer a good idea to play rugby, to be honest there was a bit of relief.
“This had been building up inside of me for four to five months. I knew there was a strong possibility that this moment (when I had to retire) was coming. By the time I got to it, I had been through all the emotional highs and lows, so I was prepared for it.
“Of course, it is devastating that my rugby career is ending. After a few years where I had a series of injuries, I had got myself back into a position where I felt, physically and mentally, that I could play the best rugby of my career.”
He added: “I’m incredibly fortunate. Scottish Rugby have helped me, particularly over the last few months. They have been awesome. I’ve spent a lot of time with (Scottish Rugby ambassador) Al Kellock, (chairman) Colin Grassie and (chief operating officer) Dominic McKay and they have helped me hugely, thinking about the transition from being a player to what happens next.
“The people they have put me in front of (from commerce and industry) has been great. I want to get into the corporate world. Coaching, as a career, was never something that appealed to me. I’m really excited for the next steps in my life.
“The big thing for me going forward is that I do not want to look back in sadness.”
On the issue of concussion, Denton has called on greater education for kids around the head injury and for the coaching of good technique when tackling
“Concussion is obviously a contentious issue at the moment,” he said. “Personally, I think World Rugby is doing as much as it can to try and limit the number of incidents.
“Controlling tackles above the shoulders has been a positive step but I think making anything above the waist illegal would cause more trouble than good.
“If my son wanted to play rugby, I wouldn’t be worried in the first instance. I think it is important that all school kids, coaches and teachers are well-educated about concussion signs, risks and treatments.
“In my experience, the majority (of concussions) occurred to the tackler, so, it’s essential that good technique is practised from a young age. And if anyone, including kids, have recurring issues then it’s time to stop.”
Denton's first start for Scotland came against England seven years ago at BT Murrayfield. A game where he was named man-of-the-match and one he has labelled as his career highlight.
“It was a real watershed moment for me," he said. "It was the culmination of everything I had been striving for since I was a kid.
"It set me up for the rest of my career. My reputation, my name, was built around that game. Maybe it was my age, but I was so blindly confident in my own ability at that time. I spent a good part of my career trying to find that state of mind again"
Scotland boss Gregor Townsend paid tribute to Denton.
He said: “We’re really disappointed that someone who still had a lot to offer the game both at club level and for Scotland hasn’t been able to do that, but our first thoughts are with his health and his life beyond rugby and it seems to be the right decision to retire.
“We were hoping that taking some time out of the game would mean he would be available for selection in our world cup training squad and when that didn’t happen we were hopeful he’d be back for next season, but again that’s not happened.
“We’re going to miss him with Scotland. He played very well last summer after being involved in the Six Nations, playing really well in that game against Argentina, and getting back to the form he was in at the last world cup.
“As coaches we really enjoyed working with Dave over the years and we wish him all the best in life after rugby.”