An n -ary operation Q : Σ n → Σ is called an n -ary quasigroup of order | Σ | if in the equation x 0 = Q ( x 1 , … , x n ) knowledge of any n elements of x 0 , … , x n uniquely specifies the remaining one. An n -ary quasigroup Q is (permutably) reducible if Q ( x 1 , … , x n ) = P ( R ( x σ ( 1 ) , … , x σ ( k ) ) , x σ ( k + 1 ) , … , x σ ( n ) ) where P and R are ( n − k + 1 ) -ary and k -ary quasigroups, σ is a permutation, and 1 < k < n . An m -ary quasigroup R is called a retract of Q if it can be obtained from Q or one of its inverses by fixing n − m > 0 arguments. We show that every irreducible n -ary quasigroup has an irreducible ( n − 1 ) -ary or ( n − 2 ) -ary retract; moreover, if the order is finite and prime, then it has an irreducible ( n − 1 ) -ary retract. We apply this result to show that all n -ary quasigroups of order 5 or 7 whose all binary retracts are isotopic to Z 5 or Z 7 are reducible for n ≥ 4 .