"I am at peace with the decision to retire and it's my choice. I think [that] is really important. [It's] really fortunate that I'm in the position to make that decision for myself," she said.
"I think before I even stepped foot on the plane to go to Arsenal at the end of last season I kind of knew it was going to be my last stint playing.
"It's a club that I love so much and respect so much, and to have the opportunity to be back there and them to welcome me knowing it was going to be my last game, it's pretty special."
Taylor added: "I'm happy that the time has come now - it's the right time."