Anderton, who has been with the Cherries for the past two years, spent 12 years with Spurs between 1992 and 2004, and also starred for England in 1996, despite missing much of the season through injury in their progression to the European Championship semi-finals.
He added: "I've been lucky to come to Bournemouth and have really enjoyed it. It's been a great way to finish my career.
"I was finding training hard work and rather than just slogging on and not enjoying it, I have made this decision.
"I would to thank all the supporters for the fantastic backing I have had since my first minute at the club."
Anderton's only domestic honour was the Worthington Cup, which he won with Spurs in 1999 - while his last five England caps came under five different managers.
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