The attacking midfielder released a statement on his management’s website saying it had been a difficult decision.
"It has been a great honour and privilege to play for Australia, and to represent one’s country is every footballer’s dream.
"I am proud of my achievements and I take with me many happy memories of my time with the national team.
"Growing up in Croydon Park, I would never have imagined scoring twice in a World Cup.
"Over the past six months, circumstances have led me to re-think my international career and I have made the difficult decision to step aside from my role with the Socceroos.
"My priorities lie with my young family, and my focus from now on will be with my club Al Nasr.
"I’ve enjoyed a lengthy and challenging season in the Middle East, and the league over here continues to go from strength to strength.
"The players that I’ve played with and the staff of the Socceroos have been fantastic and I have made some great friendships that I’ll have for a lifetime.
"I’d like to wish the current playing group every success, and I look forward to seeing them do the whole nation proud in Brazil and beyond.
"Finally, I’d like to thank my mum and dad who have supported and inspired me from day one, as well as my wife and kids who are always there for me."
Holman, who recently turned 30, has been a peripheral figure in the national team of late and was widely criticized for moving to the Middle East.
During his career he earned 63 caps in total for the Socceroos, featuring in the 2010 FIFA World Cup and both the 2007 and 2011 AFC Asian Cups.
Holman scored nine goals for the Socceroos, and was Australia’s top goal-scorer in the 2010 FIFA World Cup.
He was instrumental in helping Australia qualify for its third successive FIFA World Cup, and was recently awarded the Australian Footballer of the Year award (2012) and Australian International Footballer of the Year award (2011 2012).
More to follow.