He suffered a knee injury againt Ospreys in the Heineken Cup in January, and has not played since he limped off against Sale in March.
Lloyd, who has been at Kingsholm for a year after leaving Welford Road, told the Glaws website: "I am distraught. It was only yesterday that I found out that it was all over so it hasn't really sunk in yet.
"Although I'm bitterly disappointed I think I'll look back on my career and feel incredibly fortunate to have played alongside some truly great players.
"I won 12 trophies at Leicester. There was a five-year period when we won everything there was to win, we were the Manchester United of rugby, and I count myself very lucky to have been a part of that.
"I want to express my thanks to Gloucester for all the care and support the club has given me and for the help they have pledged to keep giving me."
He scored five tries in eight games last season, and will be a big miss to the squad.
Glaws coach Dean Ryan added: “Leon is a fantastic professional – a model for anyone wanting to reach the top in the sport – and I thank him for the contribution he made to the squad last season.
“There are very few players who have achieved what Leon has during his career and we are as disappointed and upset as he is that his career has ended in this fashion. On behalf of the club, I would like to wish Leon every success for the future.”
We couldn't agree more.

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