The Spanish midfielder, who is only 33, has hung up his playing boots once and for all.
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The former Barcelona and Bayern Munich star was expected to find a new team in Europe.
"I will always be willing to give back what I have been given and I am grateful for the time, I have enjoyed it," he posted on social media.
"Thank you, football. And to all who accompanied me and made me a better player and person along the way."
Alcantara had surgery on his hip near the end of the 2022-2023 season and never fully recovered.
