"A few hours ago I let the team know that this upcoming Test will be my last," he said.
Ponting, who is turning 38 on December 19, felt that his performance in the last couple of Tests wasn't good that made him take the decision, but said that he would continue to play for Tasmania this summer.
"Over the last couple of weeks my level of performance hasn't been good enough," he said.
"My passion and love for the game hasn't changed but at the end of the day (the decision) was based on my results.
"In this series so far they have not been up to the level required of batsmen and players in the Australian team.
"I'm glad I have got the opportunity to finish on my terms," said Ponting during a press-conference at Perth.
Ponting who has been the second highest run-scorer in Tests, after Sachin Tendulkar with 13,336 runs off 167 Tests, including 41 centuries, said that he had to take a call on his Test career as he wasn't performing well.
The former Aussie captain, who has played 167 Tests so far, will be equalling Steve Waugh's record of 168 Test caps during the Perth Test that is starting on Nov 30.
Fondly called as Punter, Ponting has been one of the Australian greats and his decision to quit Test cricket stating his performance is appreciated by everyone as the move was quite sensible, rather than blocking the way for youngsters.