Arbeloa will hang up his boots following an unsuccessful spell at West Ham, where he only played three Premier League matches before being released in May.
"It's time to say goodbye," Arbeloa told Marca.
"Physically I was ok to keep playing."
Arbeloa arrived at West Ham after spending seven years at Madrid, where he claimed LaLiga, the Champions League, Copa del Rey, the Club World Cup, UEFA Super Cup and Supercopa de Espana.
Prior to Arbeloa's time at the Santiago Bernabeu, he made almost 100 appearances for Liverpool between 2006 and 2009.