He will be replaced by Laurent Philippe, currently president of P&G Greater China.
Until his retirement, Polman will work on a number of special projects, including the transition of Gillette's business in Europe to P&G following the $57m (£30m) deal between the two firms announced last month.
Polman oversaw the integration of the Wella haircare business in Europe and is viewed internally as a key player in P&G's expansion into the beauty market.
Philippe will oversee a business that, following the Gillette integration, will have entered new product areas such as razors and batteries.
Gianni Ciserani, vice-president and general manager of P&G UK & Ireland, will report to Philippe.
Daniela Riccardi, currently vice-president at P&G Eastern Europe, will replace Philippe in China.