The 76-year-old musician has revealed he will step down from touring, via his official Twitter account.
Simon is the final headliner to be announced at this year’s British Summer Time in Hyde Park, which is billed as The Farewell Performance.
His statement reads: “I’ve often wondering what it would feel like to reach the point where I’d consider bringing my performing career to a natural end.
“Now I know: it feels a little unsetting, a touch exhilarating, and something of a relief.”
He continued: “I love making music, my voice is still strong, and my band is a tight, extraordinary group of gifted musicians. I think about music constantly.
“Sadly, we lost our lead guitarist and my friend of 20 years, Vincent N’guini, who died last December.
“His loss is not the only reason I’ve decided to stop touring, but it is a contributing factor.
“Mostly, though, I feel the travel and time away from my wife and family take a toll that detract from the joy of playing.
“I’d like to leave with a big Thank You to the many folks around the world who’ve come out to watch me play over the last 50 years.
He added: “After this coming tour, I anticipate doing the occasional performance in a (hopefully) acoustically pristine hall, and to donate those earnings to various philanthropic organisations, particularly those whose objective is to save the planet, ecologically.
“Once again, I am very grateful for a fulfilling career and, of course, most of all to the audiences who heard something in my music that touched their hearts.”