The 38-year-old batting allrounder made his first-class debut for NSW in October 2006 and retires as the state's fourth-most capped player with 110 appearances.
The former captain scored 6061 first-class runs for NSW at an average of 36.51, including 13 centuries, and also played country cricket stints at Glamorgan and Surrey.
His first-class high score of 265 came against Queensland in the 2016/17 season, the same summer he played the last of his four Test matches.
In at No.7, the Portuguese-born Henriques made two half-centuries on Test debut in Chennai in 2013 but never again scored above single figures in Test cricket.
With the ball, Henriques snared two five-wicket hauls with his right-arm medium pace in first-class cricket and took 96 wickets for NSW at 30.89.
Henriques, the most capped BBL player of all time with 141 appearances, is contracted to play at least one more season with the Sixers.
He will also continue to be available for NSW in the One Day Cup.
Henriques said his form this summer had motivated his decision to retire; the veteran averaged 19.20 with the bat this season and did not take a wicket.
"I pretty much made my mind up before Christmas this year that it was time for me to stop playing Sheffield Shield cricket," Henriques said."It was an honour to be able to lead and play for this state for so long, but playing for NSW means leading not only through words and preparation but also performances."My body was still able, even at this ripe old age, but I just wasn't leading by winning games of cricket for my state in the longer format of the game, which I believe you have to do at this age.
"We have a terrific group of younger players that will take over and move this great state forward and I will watch on with keen eyes."
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