Having gone under the knife in November 2012, the left-back attempted to return to full fitness only to suffer a further set back 11 months later.
Now, having only turned 30 on Saturday, the St. Andrew’s favourite has been forced to call time on his playing career.
Explaining the decision, Murphy said: “All of my rehabilitation went as well as it could have done and I managed to return to playing for a brief spell.
“However, I wasn't able to sustain the heights of my previous form and as a result I have no option but to retire.
“Having sought advice from the surgeon and medical staff at the football club, I had to make sure in my own mind that I was ready to retire. I have reached that decision and will look forward to the next chapter in my life.”
Everybody associated with the football club would like to take this opportunity to thank David for his fantastic service to Birmingham City and wish him well for the future.