The 31-year-old made his first-class debut for Durham UCCE in 2005 and spent eight years with Hampshire before joining Surrey at the end of 2014.
Balcombe signed a two-year deal with Surrey but did not make a first-team appearance for The Oval side.
He took 196 wickets at an average of 32.83 in 67 first-class appearances.
The right-armer's best bowling figures came when he took 8-71 for Hampshire in the first innings against Gloucestershire in April 2012, and he added a further three wickets in the second innings to give him a best match haul of 11-119.
"To play professional cricket was a dream come true and I have thoroughly enjoyed every minute," he said.
"I have made lifelong friends, experienced some wonderful career moments and it provided me with 10 seasons of immense enjoyment."
Surrey seamer David Balcombe has retired from professional cricket in order to take up a role with the Kevin Pietersen Foundation.