The towering second-rower played 186 first-grade games after making his NRL debut with Canterbury in 2015.
He joins Joe Ofahengaue, Clint Gutherson, Bryce Cartwright and Reagan Campbell-Gillard as another big name to leave the Eels' playing list since Jason Ryles took over as coach.
Lane, 30, is working towards a Masters degree in positive psychology and will transition into a role in Parramatta's pathways and NRLW programs.
"Shaun has been a wonderful ambassador for the Parramatta Eels," said Eels head of football Mark O'Neill.
"He carries himself with humility, integrity, and professionalism and he's been an exceptional role model for younger players."
Lane played stints at the Bulldogs, Manly and Warriors but is best remembered for his 138 games in blue and gold.
He found career-best form in the 2022 season, becoming one of the NRL's most dangerous second-rowers as the Eels made their first grand final in 13 years.
That year, Lane produced more try assists than any non-spine player, finding wonderful chemistry with five-eighth Dylan Brown on the left edge.
He struggled to reproduce that elite form in the years that followed amid injuries and Parramatta's fall from heavyweight status.
Lane was granted leave to assess his NRL future in April, with the hefty round-six loss to Canberra in Darwin proving his final appearance.
Off the field, Lane became known as one of the NRL's deepest thinkers.
He has completed a Bachelor of health sciences and a Graduate Diploma in psychology and produced a feature-length documentary focusing on mental health that premiered in 2024.
"I've absolutely loved my time playing for the Eels," Lane said.
"This club means a lot to me, and I'm incredibly grateful for the experiences I've had and the relationships I've built here. I'm really thankful to the fans for their unwavering support throughout my career —it's meant the world to me.
"I'm now looking forward to continuing my career at Parramatta in a different capacity, helping our young athletes thrive on and off the field."
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