Nolito last played for Spanish second division side Ibiza, where he scored once in 27 appearances last season.
Nolito played for the likes of Barcelona, Benfica, Sevilla, Celta Vigo and was one of Pep Guardiola's first buys as Manchester City manager in the 2016/2017 season.
He struggled to settle in England, scoring four goals in 19 league games before returning to Spain.
Nolito earned 16 caps for the Spanish national team, scoring six goals and featured at EURO 2016.
In announcing his departure from the game, Nolito said: "The time has come when I must say goodbye to the passion that has been my life for so many years: football.
"I have been privileged and have felt lucky to be able to enjoy at the highest level this wonderful sport that has allowed me to experience so many things and take with me, forever, countless memories.
"Special thanks to my family for supporting me from the first to the last day."
