ESSENDON defender James Kelly has announced his retirement, with the former Cats great telling teammates of his decision on Wednesday morning.  

The three-time premiership player and key member of Geelong's brilliant era joined the Bombers on the eve of the 2016 season as a top-up player after the club lost the majority of its senior members to anti-doping bans, despite having retired at the end of 2015.  

Kelly told a media conference on Wednesday that he was "worn out and tired" at the end of his time with Geelong.

"The Essendon Football Club reignited my passion for the game."

Kelly said the decision to retire this time was a mutual one between him and the club, and that he would have been prepared to play on had the club wanted him to.

"The best thing is just to finish now and to hand it over to other guys," he said.

Kelly said he would not return to the AFL House football operations job he had accepted before Essendon brought him back to playing, but would pursue a coaching career.

"I feel like that's something I want to do and need to do, so I will be going down that path," he said.

He played 20 games and finished runner-up in the best and fairest, and has played 17 games this season, including his 300th AFL game.

Kelly, who turns 34 later this year, will retire at the end of the season, with his announcement following Jobe Watson's confirmation that 2017 will also be his last year in the red and black. 

The Bombers could also have another few senior players depart the club at the end of the year, with veteran midfielder Brent Stanton, and experienced pair Heath Hocking and Ben Howlett also out of contract.