Foster appeared in just 11 games this season and averaged 2.3 points.
"It's with deep regret that I have to conclude my basketball career," said Foster. "I've given my all to the Pacers and the community the last 13 years. I had hoped to be able to finish the season, but unfortunately my back problems prevented that from occurring. I want to thank the Simon family and the Pacers��� organization for 13 memorable years."
In 13 NBA seasons, all with the Pacers, the 35-year-old Foster averaged 4.9 points and 6.9 rebounds.