The 32-year-old, who turned down the chance recently to return to the Brandywell, has decided against continuing his career. He had been with Crusaders recently.
In a statement released last night, he said: “If you're gonna do something you should give it 100% and I genuinely don't think I was 100% committed to giving it another go. That said I think the time is right for me to call it a day on what has been a decent career.
Molloy spent five years with Derby County’s youth set-up before returning to play with Drogheda United and he was then signed by Stephen Kenny for his hometown club Derry City.