Hatakeda fell heavily on her back while training on the uneven bars during the 2021 World Championships in Kitakuyshu, Japan.
She had left the hospital a week after her fall, assuring that she was going to devote herself to her recovery "and work hard to come back as soon as possible".
But she announced her retirement on Instagram on Tuesday, citing her injury as the main reason for her retirement.
The gymnast still suffers today from serious sequelae to the spinal cord and cervical vertebrae.
She also said it's been "difficult to stay motivated" during the pandemic, with competitions being regularly canceled or postponed.
Next month's Japanese national championships in Tokyo will be her last competition before her retirement, she said, however.
Her injury will prevent her from competing on any apparatus, Hatakeda said, but she will "try to do as much as possible to be able to give people something back, even if it's just a little."
"I had so many great experiences that I never thought possible when I started gymnastics," she wrote, expressing "her gratitude" to the people who supported her.
Hatakeda was part of the Japan women's national team that finished fifth at the Tokyo Olympics last year.
His father Yoshiaki, a former gymnast, won the bronze medal in the men's team event at the Barcelona Olympics in 1992.
© 2022 AFP