Payten, 32, has opted not to see out the remainder of his contract which is due to end in 2012.
Currently struggling with a knee injury, Payten is a veteran of 253 NRL games from stints with Canberra, Sydney and the Tigers.
He was a member of the club’s premiership-winning squad of 2005 and currently has 145 Tigers appearances to his name.
“I’ve been very fortunate to have been able to play this great game at such a high level for a long time. The game has certainly changed,’’ Payten said.
“Rugby League has been very good to me and I have made some great friends and have some special memories. My years at Wests Tigers have been the best time of my life and I’ve really enjoyed playing under a fantastic coach in Tim Sheens.
“Wests Tigers will always be a part of me. I just want to get back onto the field now as quickly as possible to help the team make the finals.”