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The 27-year-old academy graduate was injured during an Investec Champions Cup match against Leinster in January.
Despite "exploring all avenues" to get back, Simmons has had to quit playing after 39 appearances for the club.
He has now taken up a coaching role at Welford Road.
"It is with a heavy heart that I've been forced to make the difficult decision to hang up my boots and retire from playing professional rugby," Simmons said., external
"It had always been a dream of mine to play for this club and I am so proud to have been lucky enough to be able to do so over the last nine years.
"While this isn't the ending I envisioned, and there are many more goals I would love to have achieved, I leave playing the game with immense pride and gratitude for every opportunity I've had.
"I'm excited to begin my coaching journey here and I am looking forward to what the future holds."
Simmons, who played at scrum-half, wing and full-back, made his Tigers debut in the Anglo-Welsh Cup against Gloucester in November 2017, with his first tries coming in the same competition against Wasps the following February.
He signed a new contract in March in the hope of resuming fitness.
Tigers general manager Richard Wilks said the club were "proud" of the way Simmons had coped with his injury and the aftermath.
"As a rugby player, Harry was tremendously gifted. As a person, he is loved by staff and team-mates here at the club, and it's been difficult for all of us to see his career end this way," Wilks added.
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