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Penrith hooker Peter Wallace.

Penrith skipper Peter Wallace has announced his immediate NRL retirement after 240 games and playing the last two seasons with no ACL in his knee.

Wallace, 32, has called it a day having battled numerous injuries at the end of his career, including returns from two separate knee reconstructions, the last of which "actually failed" according to Panthers general manager Phil Gould.

Wallace will join the club's coaching staff having already taken up a role working within Penrith's junior ranks, as Gould paid tribute to one of the Panthers most enduring servants.

"It's an incredibly selfless act from Peter," Gould said via a club statement.

"He always had great faith in the young players coming through our system here at Panthers and has played a huge part in their development as both footballers and people.

"Peter has been battling with injury for several years and has repeatedly played for the club with injuries that would keep the normal man home in bed.

"It can now be revealed that Peter has played the last two years with no ACL in his knee after his last knee reconstruction actually failed.

"Management and coaches knew of his condition, but he didn't want anyone else to know. I can also remember him staying on the field for 50 minutes in a game where he had completely torn his ACL. He is a tremendously tough individual and his leadership has been wonderful for our club."

Locals Sione Katoa and the highly rated Wayde Egan have been groomed as his successors to Penrith's No.9 jersey, with Katoa claiming the starting role since Wallace was last sighted in first grade last month.

After first debuting with his junior club in 2005, Wallace left the club for a six-year stint with Brisbane, rising to NSW Origin honours and playing 139 games with the Queensland outfit.

Upon falling out with then-Broncos coach Anthony Griffin, Wallace returned to the foot of the mountains in 2014, playing a key role in the Panthers rebuild into a consistent finals contender.

Despite two season-ending knee injuries Wallace was made Panthers skipper when Griffin arrived at the club in 2016 as the pair mended what was once perceived a relationship beyond repair.

A late shift to hooker also revived Wallace's representative career to the point where he was pencilled in as the Blues first-choice No.9 last season only for injury to cruelly rule him out of an Origin comeback.

Along with four NSW caps between 2008-09, Wallace also represented Scotland at the 2013 World Cup.

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