The former Liverpool full-back received news of the devastating diagnosis recently and the announcement became public yesterday.
Darby, just 29, had reunited with Phil Parkinson at Bolton Wanderers in the summer of 2017 and featured three times last season.
His wife and Man City captain Houghton said the pair will keep fighting through it.
The 30-year-old tweeted: "Thank you everyone for your messages over the last few days. We can’t thank you all enough for your love and support. We are overwhelmed.
"We will keep fighting and most of all keep smiling!"
Motor neurone disease affects specialist nerve cells in the brain and spinal cord, and causes everyday activities to become increasingly difficult or completely impossible.
The majority of those diagnosed with the disease are given a three-year life expectancy starting from when they first notice the symptoms.
Darby revealed in a statement: “It is with great sadness that I announce my immediate retirement from professional football due to a recent diagnosis of Motor Neurone Disease.
“I would like to take the opportunity to thank my team-mates, Phil Parkinson and all the staff at Bolton Wanderers Football Club for their amazing support at what has been an extremely difficult period for myself and my family.
MOTOR NEURONE DISEASE EXPLAINED
What is motor neurone disease?
Motor neurone disease is a rare condition. About two in every 100,000 Brits develop it each year. It affects specialist nerve cells in the brain and spinal cord, causing the function of motor neurons to break down.
When this occurs, everyday activities become increasingly difficult or completely impossible.
The majority of those diagnosed with the disease are given a three-year life expectancy starting from when they first notice the symptoms.
What causes motor neurone disease?
Even though there has been research into the cause of motor neurone disease, it is difficult to identify a particular trigger for the disease.
5-10% of all people with MND have the inherited or genetic form of the disease.
Whether there is a family history or not, other environmental triggers may still be needed for the disease to begin. These triggers may be different for each individual.
How is motor neurone disease treated?
Medical research is yet to find a cure for the rare illness.
Despite this, there is some treatment that can help those with motor neurone disease have a better quality of life, as well as helping with their mobility and bodily functions.
For those who struggle with respiration, a breathing mask may be prescribed. Riluzole is a medication that is used to help people with motor neurone disease, although it doesn’t prevent the condition progressing.
As it stands, this treatment has only shown a very small improvement in patients’ survival.
“I would like to ask for privacy at this time so I can adjust to the battle I have ahead and so that I can spend time with those closest to me.”
The defender came through the ranks of hometown club Liverpool and made his debut against PSV in the Champions League in 2008, following it up with his first start for the Reds in the same competition the following year.
After loan spells at Swindon, Notts County and Rochdale, he left Anfield permanently in 2012 for Valley Parade and would go on to captain the Bantams.
Former Rangers defender Fernando Ricksen and international rugby players Doddie Weir and Joost van der Westhuizen, who died last February, six years after being diagnosed, are other prominent sportsmen who have been afflicted by the condition.
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