A multiple world champion, the German, who became the first female biathlete to achieve a sprint and pursuit double at the same Olympics when she won both at the Pyeongchang Games last year, has dominated her sport in recent years.
But the latest season was far from successful by Dahlmeier's standards as injury, illness and a dip in form took their toll.
"After an unbelievably tough season with lots of highs and lows I no longer feel the 100 percent passion that is needed for professional sports," Dahlmeier said in a statement.
"This is why after some long thought I decided to end my active biathlon career."
Dahlmeier, who won seven gold medals at world championships, also secured bronze in the individual event in Pyeongchang.