The 223-game veteran, who had signed a one-year contract extension with the club, cited family reasons for the sudden decision to return home to Melbourne with wife Bree and their children, Taj and Cove.
McPhee made his AFL debut for Fremantle in 2001, playing 25 games for the club in two seasons before being traded to Essendon, where he played 142 games.
McPhee won the Bombers’ best and fairest award in 2004 and that year was also named in the All Australian team. He returned to Fremantle via pick three in the 2009 Pre-Season Draft, going on to play a further 56 games for Freo.
McPhee said that Bree and his family in Melbourne had always been very supportive for him to pursue his AFL dream, but eventually there came a time when he felt he had to now consider the needs of his family.
"Bree and I and our two boys are really close to our families in Melbourne and, while I don't regret any moment of my time at Freo, we have found it difficult at times being apart from the rest of the family," he said.
"I knew the difficulties they experienced when I travelled and was frequently away for two or three days at a time. I knew, in the background, that wasn't exactly what Bree and I wanted. I felt I had to make the decision to retire and return home, regardless of whether I was fit enough to play one or two more seasons of football or not."
The 30-year-old said leaving Fremantle when he felt the club was on the verge of success had made the decision incredibly difficult.
'I've been in the system for 12 years, and I had always wanted to play in a premiership," he said.
"I feel the team has really grown over the past 12 months. There's a great deal of talent mixed with experienced players and Ross Lyon appears to be the right man to lead them from this point on. The future for the team looks really bright, however, this has only made my decision harder. But I'll still be watching with passion and pride, hoping the club is successful."
McPhee plans to take up a position in his father-in-law's defence and security marketing company when he returns to Melbourne and has not ruled out taking on a non-playing role in football in the future.
General manager of football operations Chris Bond said that while it was disappointing to lose McPhee, he understood the personal reasons behind the veteran’s decision to return home to Melbourne.
“We are very disappointed to lose a player of Adam’s calibre and capability,” Bond said.
“Adam’s highly respected and he made a significant contribution to the playing group with his experience, professionalism and preparation, which is elite. We understand the personal reasons for the decision and Adam, Bree and the boys have our full support.”
Meanwhile, the club and Jack Anthony have reached an agreement that means the 24-year-old will not have to fulfil the final year of his three-year contract.
Bond said that the club was pleased it had been able to reach an agreement that was in the best interests of both Anthony and the club.
“Jack has always been very professional in his approach to training and playing during his two-years at the club and we wish him all the best in the future,” Bond said.
