Watson, 37, captained Thunder for the last three seasons in the league.
Shane Watson has called time on his career with Sydney Thunder in Australia's premier domestic T20 competition - Big Bash League. The veteran all-rounder, who retired from international cricket in 2016, wants to spend more time with his family during the summer months from here on.
Watson played for Thunder for the last four years and led the club in the previous three editions of the BBL. He is the team's leading run-getter with 1014 runs.
"I want to thank everyone from the bottom of my heart who has been involved with the Sydney Thunder over the last four seasons," said Watson in a statement issued at Thunder's website. "I have so many amazing memories that I will savour forever with the one standout being our win in 2016. I want to especially thank Nick Cummins, Paddy Upton, Lee Germon and Shane Bond who made my experience with the club so enjoyable."
“I will most definitely miss the support that the club gets from the Thunder Nation. Their unwavering support through the ups and downs inspires everyone and I will cherish that support deeply."
"Finally, to my teammates, I have played with so many great people and cricketers at the club and I sincerely wish everyone the absolute best for the upcoming seasons."
Thunder's coach and former New Zealand pacer Shane Bond paid a fitting tribute to Watson by inviting him to join the side in at least some capacity during the tournament.
"I played against him a little bit and he was an outstanding player, so I was really looking forward to working with him," he said.
"He was great to work with, he’s the ultimate professional. He cared about the team and the players and was hugely respected in the dressing room. We’re really going to miss what he brings to the team and he will be a big loss."
"For the young players at the club he was very approachable, honest and you couldn’t ask for a better role model. We’d love to have him around in some capacity and there’s an open invite to have him join us during the season."
Watson's other two T20 commitments are with Quetta Gladiators in the Pakistan Super League and Chennai Super Kings in the Indian Premier League, but it is not confirmed yet whether he'll continue playing these competitions.
(Inputs from CricketNext)