The 32-year-old has played 196 games since making his debut against Melbourne in 2001.
David said his decision to hang up the boots was to ensure the team continued its march towards future success.
“I’ve really enjoyed the people and friends I’ve made over my time at the football club,” Hille said.
“A lot of the young guys have developed really well and I’ve got a lot of confidence in the team moving forward, I’d love to be a part of it but I’m not going to be, and I wish them all the best.”
“The place has changed a lot, as it will in the future, and the club heads out to Tullamarine next year which is another positive step.”
Hille is a former captain and 2008 Crichton Medallist with the Bombers having played a key role during his time with the club.