The ex-England lock, who won 12 caps, was injured in last month’s 37-27 Championship win over Nottingham at Headingley. He has not played since and admitted: “It is massively disappointing to have to end my career in this way.
“But, having spoken with the club’s doctors, they have advised me that it would not be safe for me to continue playing.
“Since the Nottingham game I have experienced a number of side-effects from the concussion and I am now working with the Industry of Sport in London on treatment.”
Jones played 40 times for Carnegie. He had been made captain at the start of this season having joined from Worcester Warriors the previous campaign. He spent a decade with Sale Sharks where he won the Premiership in 1996 alongside Jason Robinson, Charlie Hodgson and Carnegie colleague Dean Schofield.
He also lifted the European Challenge Cup and made 213 Premiership appearances - 11th on the all-time list.
“This has all been quite sudden; I’d agreed a new Carnegie deal so have no immediate plans for a career outside of playing,” he said.
“I joined Carnegie with the ambition to get promoted and am gutted having to call time. I’ve worked with some fantastic players and coaches and am extremely grateful to all.”