The band, known for its early 1990s hit "Wind of Change" among others, said on its Web site Sunday that "we agree we have reached the end of the road."
It said it would end its career with a final album - Sting In The Tail, to be released in March - and a tour that will start in Germany in May and take it across the world "over the next few years."
Guitarist Rudolf Schenker founded the band in Hannover in 1965. Singer Klaus Meine joined a few years later. Both men are 61.