General manager of football operations Paul Hamilton said Daniher made the decision after struggling to overcome back, groin and shoulder injuries.
""We are obviously very disappointed for Darcy because he is an outstanding young man with great potential who just hasn't been able to get his body right,"" Hamilton said.
""This was a difficult decision for Darcy and his family but we would like to thank him for his contribution over the past four years.
""Darcy is looking forward to the next chapter of his life and we wish him every success in his future endeavours.""
Daniher was drafted to Essendon via selection 39 (father/son selection) in the 2007 AFL National Draft. He debuted against Port Adelaide in 2008, playing six games for the club.
