Lipman, a foundation player with the Rebels in 2010, made 22 appearances for the franchise and represented England on 10 occasions.
But he suffered several concussions throughout an 11-year career, five of which came in a six-month period which was eventually the final straw for the 32-year-old.
Lipman played for Bristol and Bath before making the move from England to Australia to join New South Wales club Warringah.
From there, he became a Rebel, and despite his poor luck with injuries, he managed 12 games for Damien Hill's side this season.
Lipman said he was grateful for getting the chance to ply his trade in several top-level competitions.
"I feel very blessed to have played in the English Premiership, Heineken Cup, internationals with England and now Super Rugby," he said.
"I am so grateful that the Rebels gave me the opportunity to play in this competition. I always wanted to be a part of Super Rugby and I have thoroughly enjoyed every moment.
"I would like to thank the Rebels and the Victorian rugby community for their support over the past two years. I have thoroughly enjoyed my time in Melbourne and I feel privileged to have been a part of this wonderful club.
"For me, playing professional rugby is a great test of character. You are constantly measuring yourself against the best and pushing your body beyond its limits. There really is nothing better."
Lipman will join fellow retirees Stirling Mortlock and Al Campbell in bidding farewell to Rebels fans on Friday at AAMI Park.
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