The decision was made following the singer's run of ill health.
Following two recent incidents of McCafferty collapsing on stage and concerns that they were caused by strokes, Nazareth have now posted a statement on their website confirming that the singer has retired.
The statement reads:
"We sadly have to tell you all that Dan has been forced to retire due to ill health.
He suffers from C.O.P.D. ( Chronic Obstructive Pulmonary Disease).
It has gotten worse lately and after trying to play a festival in Switzerland last weekend Dan found it impossible to continue after performing only three songs.
In the dressing room afterwards he told the band that he couldn’t go on any longer.
We’ll keep you updated on further developments."