"When I got the injury I knew it was quite serious. I went for a scan and it showed up quite a few problems," the former West Brom and Arsenal keeper told the clubs official website.
"I'd had the operation on my back about 10 or 11 years ago and that went well, but this was in the same area and when I knew that I didn't want it operating on again.
"So I've had no real choice but to call it a day, which is very sad, but it happens to a lot of players and you've just got to try and stay positive."
Thirty-three-year-old Miller joined Rovers in February 2000, but has made only two appearances in his time at Ewood Park.