The 33-year-old centre-back, who was at at Ewood Park between August 1992 and October 1993, has had to quit the game after sustaining a cruciate knee ligament injury whilst playing for Swedish side Malmo in their 1-0 home defeat to Swiss side FC Thun in the UEFA Champions League third qualifying round first leg last Wednesday.
"An ending is never predictable, and it often doesn't happen the way you had imagined," said Andersson.
"Now my body has said no. I can't do it anymore, which makes the ending more definite, but the decision easier. You have to listen to your body, because you'll have it with you your whole life."
Rovers snapped up Andersson from Malmo and leaving Ewood Park he went on to play for Borussia Munchengladbach, Bayern Munich and Barcelona before he re-joined Malmo in 2004.