Real Madrid said Tuesday the 34-year-old German international "has decided to bring an end to his time as a professional footballer following Euro 2024."
"Real Madrid would like to express its gratitude and affection to Toni Kroos, a player who will go down in Real Madrid history as one of our club and international football's greatest legends," the club said.
Kroos was a World Cup champion with Germany in 2014 in Brazil, and had a successful career with Bayern Munich as well, helping it win one Champions League and three German league titles.
Real Madrid will face Borussia Dortmund in the Champions League final on June 1 in London. His European trophies with Madrid came in 2016, 2017, 2018 and 2022. He won the Champions League with Bayern in 2013.
Kroos has been with Madrid since 2014, helping it win 22 titles, including four European Cups and four Spanish leagues. He made 463 appearances with the club, which called the midfielder "a key player in one of the most successful periods of Real Madrid's 122-year history."
"Toni Kroos is one of the great players in Real Madrid history and this club will always be his home," club president Florentino Pérez said.
Real Madrid said Kroos will remain forever in the hearts of every fan "thanks to his mastery of the game and the fact he has given his all for our jersey, a steadfast example of the values of Real Madrid."
Kroos' contract with Real Madrid was expiring at the end of this season and the club and the player were reportedly negotiating an extension.
Kroos said in February he agreed to play for Germany at Euro 2024 after a request from coach Julian Nagelsmann. He has not played for for the national team in almost three years, since Germany's loss to England in the second round of the last European Championship.
He had said a few months ago that he didn't know what would happen next season.