Ashwin retires from the game as the second highest wicket-taker for India in Tests with 537 scalps in 106 games, leaving him only behind Anil Kumble (619 wickets). He will continue to play club cricket.
The 38-year-old played the day-night Test in Adelaide and picked up one wicket.
He was seen sharing an emotional moment with star batter Virat Kohli in the dressing room hours before the announcement.
The rain-interrupted third Test between India and Australia ended in a draw at The Gabba in Brisbane on Wednesday, leaving the series tied 1-1 going into the penultimate Test in Melbourne. India were eight for no loss with Yashasvi Jaiswal (4) and KL Rahul (4) at the crease in their chase of 275 when bad light and rain forced an early tea.
Australia made a spirited declaration at 89 for seven in their second innings with more than one session to go.
India’s star pacer Jasprit Bumrah led the show with 3/18 in his six overs, aided well by Mohammed Siraj (2/35 in 7 overs) and Akash Deep (2/28).
The surprise move from skipper Pat Cummins came after the 18th over when they declared the innings as a two-way result seemed realistic with more than 50 overs possible in the final session.
The third Test had multiple rain interruption across the five days.
Earlier, India were all out for 260 in response to Australia’s 445.
Resuming the day at 252 for nine, India added eight runs in 24 balls.
Australia gained a 185-run first innings lead after Akash Deep was stumped off Travis Head’s bowling in the 79th over.