The Portugal captain will not be available for their Nations League match against Italy on September 10.
Coach Fernando Santos previously indicated he hoped Ronaldo would opt to play on, however.
"I am convinced that he has a lot to give in football," Santos said after Portugal's World Cup exit. "There is a tournament in September, the Nations League, and we hope that he is with us so that he can help the young players who will need their captain's example."
And Santos also believes Ronaldo should have won the award, even though he did collect the prize for the best forward in last season's tournament.
"I have no doubt about that, if it was to choose the best European player, the best scorer in the Champions League, he should have won," Santos said.
"It's clearly unfair, he was more than worthy to have been the one to win. It is my sense of injustice, he should have won."
Without Ronaldo, Gedson Fernandes, Sergio Oliveira, Claudio Ramos and Pedro Mendes receive their first international call-ups.
Portugal squad in full:
Goalkeepers: Beto (Goztepe), Claudio Ramos (Tondela), Rui Patricio (Wolves)
Defenders: Joao Cancelo (Juventus), Ruben Dias (Benfica), Raphael Guerreiro (Borussia Dortmund), Pedro Mendes (Montpellier), Luis Neto (Zenit), Pepe (Besiktas), Mario Rui (Napoli), Cedric Soares (Southampton)
Midfielders: William Carvalho (Real Betis), Bruno Fernandes (Sporting CP), Gedson Fernandes (Benfica), Ruben Neves (Wolves), Sergio Oliveira (Porto), Pizzi (Benfica), Renato Sanches (Bayern Munich)