South African born Luscombe, who could play centre or wing, made his Wales senior debut coming on as a replacement against Scotland in a pre-2003 Rugby World Cup international.
His move to Warriors gave him the chance to again work with Mike Ruddock who included him in the Grand Slam winning side of 2005. Luscombe was also a regular during the 2006 RBS Six Nations, scoring his second international try in the match against France at the Millennium Stadium that concluded Wales's 2005-2006 championship and gave France the title.
The 28-year-old, renowned as a strong running and creative centre, made nine appearances for Warriors and scored a try against Petrarca Rugby in the European Challenge Cup.
"It is with great regret that I have to confirm that Hal Luscombe has decided to retire from professional rugby," said Director of Rugby, Mike Ruddock.
"Hal has been released from his contract in order for him to pursue different ambitions.
"Hal is a terrific guy who has been a fantastic player for a number of years with Newport Gwent Dragons, Harlequins, Worcester and Wales.
"I would like to thank Hal for his service to the Warriors and I would like to pay tribute to his outstanding character and performances over the years, most notably as a member of the Wales Grand Slam winning team of 2005. I wish him every success in the future."