"This is an emotional time for me but I think I had almost made the decision in August last year and have just not been able to make the announcement," Jacobs said.
"I have always done things for the right reasons and I think that this is the right time to step away."
Jacobs had been contracted to the Warriors for eight years and was an integral part of the team as a player and captain.
He suffered a number of injuries over the past few years and felt his body was no longer up to the task.
"I have been overtraining all my life there are no half-measures and I think that this has led to my body breaking down.
"I was hoping to push it another few years but I don't think it will be fair on myself or the Warriors."
He said he would like to keep his T20 prospects open and might spend some time playing in the UK during the winter."
The 32-year-old Jacobs led the Warriors to two trophies in 2010/2011 and also took the team to the Champions League where they lost to Chennai in the final at Wanderers -- in the same year.
His contract with Mumbai Indians in the IPL was a childhood dream realised when he walked out into the middle to open the batting with Sachin Tendulkar.
"As a youngster, probably aged about nine, I remember having a playing card with Tendulkar on it at that stage he had played three Tests and was only 19. Walking out on that field with Tendulkar was something that I had been working towards all this time."
Jacobs played 91 first class matches scoring 5520 runs with 14 hundreds.
His one-day cricket statistics are equally impressive having played 106 matches with a strike rate of 81.27 and in the shortest format of the game, T20, Jacobs played 83 matches scoring 1707 runs at an average of 25.86.
"Davy has played a very important role in the success of the franchise. His leadership abilities were unquestionable and he led the team to their most successful season in 2010/2011," interim CEO of the Warriors Thando Booi said.
"He has always led from the front and had a 'never give up' attitude all through his career.
"We wish him all the best and thank him for his dedication and commitment to the team, the franchise and cricket in our province and country."
--sapa--
