Sanders last played when Washington won the 2019 WNBA Championship, having opted out of the 2020 season taking place in the Wubble.
“LaToya has meant so much to our success and championship culture," head coach Mike Thibault said.
"As one of the premier defensive players in the WNBA, she set a tone for our growth, improvement, and maturity as a team over the past several years.
"She has been a shining example for what it’s like to be a true professional.
“While we are sad that she is retiring as a player, we are thrilled that she is beginning the next phase of her professional life as a member of our staff.
“She will continue to be a great mentor for her former teammates as part of our on-court player development, but will also join our off court efforts in the areas of community relations, social justice initiatives, youth programs, and marketing, among others."
In five seasons with Washington, Sanders averaged 7.2 points and 5.9 rebounds in 89 total games.
In their 2019 championship-winning season, she averaged 6.1 points and 5.5 rebounds per game and started every regular season and playoffs games.
In the 2018 season she shot .607 from the field, the highest percentage in franchise history.