We establish the existence of bulk odd-frequency superconductivity in Sr_{2}RuO_{4} and show that an intrinsic Kerr effect is direct evidence of this state. We use both general two- and three-orbital models, as well as a realistic tight-binding description of Sr_{2}RuO_{4} to demonstrate that odd-frequency pairing arises due to finite hybridization between different orbitals in the normal state, and is further enhanced by finite interorbital pairing.