The band made the revelation in a statement on their official website today.
"To our Fans and Friends: As REM, and as lifelong friends and co-conspirators, we have decided to call it a day as a band," the group wrote.
"We walk away with a great sense of gratitude, of finality, and of astonishment at all we have accomplished. To anyone who ever felt touched by our music, our deepest thanks for listening."
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Band members Michael Stipe, Peter Buck and Mike Mills also shared their own thoughts on the split.
"A wise man once said, 'The skill in attending a party is knowing when it's time to leave,'" said Stipe.
"We built something extraordinary together. We did this thing. And now we're going to walk away from it. I hope our fans realise this wasn't an easy decision; but all things must end, and we wanted to do it right, to do it our way.
"We have to thank all the people who helped us be REM for these 31 years; our deepest gratitude to those who allowed us to do this. It's been amazing."
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Watch the video for REM's 'Everybody Hurts' below: