The 35-year-old has decided that now is the right time following his country's early exit from Euro 2012.
After being asked whether the defeat by England was his last international game, he told ITV: "Probably. I will play one more game just as a friendly – a goodbye game."
Shevchenko was disappointed that his co-hosts could not progress any further than the group stages, but he understood how difficult it was to qualify for the quarter-finals after being drawn in a group with three of the top 20 teams in the world.
"Of course we are sad because we [host] the competition and after the first game we were magnificent, very good and we won against Sweden," he added. "And when in a group where you have England, France and Sweden it's a tough group. We tried coming out of a tough group and I think we played well."
The striker was disheartened that Marko Devic's shot was not given as a goal, despite the ball crossing the line before John Terry could clear it, and stated that he was not sure if the best team won on the night.
"It's difficult to say. We created so many chances and I think we scored a goal. It was a goal. The same thing happened to England in the World Cup  and I think the goal would have changed the game.
"We controlled the game and we controlled the possession. England won. Congratulations, England are a strong team."
Shevchenko did not rule out Roy Hodgson's men for the tournament, highlighting the fact France were beaten by Sweden, a team who were already knocked out of Euro 2012.
"England play against Italy and it will be a difficult game. England are a strong team and you never know what will happen. England can reach the final. France lost [Tuesday]. Anything can happen."