Tough Newcastle and former Test forward Steve Simpson has announced his retirement from rugby league.

The 30-year-old has succumbed to a chronic knee injury which limited his ability to train in recent seasons and has kept him on the sidelines since round 11 this year.

The no-nonsense second-rower known as `Big Horse' played seven Tests for Australia, 13 State of Origin games for NSW and 216 first grade matches for the Knights after debuting in 1999.

"I'm proud to say I played for the Newcastle Knights, I've had a great time and I wouldn't change a thing," Simpson said in a club statement.

"There have been so many good times, I have met so many good people and now I look forward to supporting the boys and enjoying the next part of my life.

"I really want to thank my mum and dad who clocked up the kilometres during my teenage years as I juggled being an apprentice mechanic in Singleton and my football commitments in Newcastle."

Simpson was off-contract at the end of the 2010 season and his retirement will free up some cash for the Knights as they rebuild their pack following the pre-season departures of Danny Wicks and Chris Houston.

Former NSW prop Ben Cross is also weighing up his future, while Newcastle have already signed Antonio Kaufusi from North Queensland and Neville Costigan from St George Illawarra.

Simpson will be farewelled at Newcastle's last home game of 2010 against the Dragons on August 28.

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