Totti broke his left leg and strained ligaments in his ankle while playing for AS Roma in February. He underwent surgery and hurried to return for the World Cup.
But Totti couldn't perform his best at the tournament in Germany. "I'm taking a break until the end of the year," Totti said at Roma's training center.
Totti will instead focus on playing for Roma. "I want to regain my top form, that's why I decided to take a break," he said.
Totti will miss Italy's first four qualifying matches for the 2008 European Championship.
The Azzurri host Lithuania on Saturday and visit France on Wednesday for a rematch of the World Cup final. Italy then faces Ukraine on Oct. 7 and visits Georgia on Oct. 11.
Totti could return against Scotland on March 28, the Azzurri's first qualifier in 2007.
He still has about 10 screws inside his left leg which will be removed at the end of this season. After the procedure, Totti won't be able to play for a month.