Wordsworth, 33, is in his 12th season with the Reds after joining from Kendal Town in 2011 following his release from Carlisle United.
During that time, he has made 330 appearances and has scored 21 goals.
The long-serving defender will play his final game this Saturday at home to Gainsborough Trinity.
On the news of his retirement, Workington manager Danny Grainger said: “[Wordsworth] is a manager’s dream – never complains, never moans and absolutely hates to lose in whatever you ask him to do. He will leave a huge void, on and off the pitch.
“Unfortunately, football doesn’t stand still and wait for us to find the next Dan Wordsworth and what he brings to us is going to be difficult to replicate. It will be almost impossible to fill the void.
“He has put his body through so much pain, particularly this season, and I can’t thank him enough for his unstinting efforts for the team. Dan has been an unbelievable servant to the club and I’m sure I speak on behalf of my predecessors and former players when I say thank you for everything.”
Reds captain Conor Tinnion also paid tribute to the talismanic Wordsworth saying: “I was gutted to hear that Dan is retiring but know, deep down, this is the right decision for him.
“Not many people are aware of the pain he has been playing with this season because he has managed to retain his high-performance levels. But I think the time is right before he does any more damage to his body.
“Dan is going to be impossible to replace, like-for-like, because, quite simply, I don’t think players like him exist anymore.
“As players and supporters of Workington, we have to be grateful for the many years of service he has given and, hopefully, we can give him the send-off he deserves on Saturday.
“He’s one of the best players I have ever played alongside and, more than anything, just an absolute winner.”
Photo credit: Workington AFC