The 26-year-old made the decision after his mandatory annual MRI scan revealed complications.
"It had got to the point where I was worrying my family sick every time I got in the ring," he said.
"I've won two world titles and had some great nights. Now I have realised the main thing is being healthy and I am not going to jeopardise that."
Farnell won the WBU crown from Ruben Groenewald in 2002 and lost it to Wayne Elcock a year later. He intends to stay in the sport in a training and management capacity. Tweet

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