The 38-year-old stated that he feels that ‘there are other players who can help the team deliver the win.’
Nadal said: ‘I’m really disappointed to share that I won’t be able to compete at the Laver Cup in Berlin next week.
‘This is a team competition and to really support Team Europe, I need to do what’s best for them and at this moment there are other players who can help the team deliver the win.’
Nadal’s last action came at the Paris Olympics, when he played alongside Carlos Alcaraz and was defeated in the quarter-finals of the men’s doubles by American duo Austin Krajicek and Rajeev Ram.
He continued: ‘I have so many great, emotional memories from playing Laver Cup and I was really looking forward to being with my teammates and with Bjorn (Borg) in his final year as captain.
‘I wish Team Europe the very best of luck and will be cheering them on from afar.’
Nadal has enjoyed an illustrious career that has included him winning 22 Grand Slam singles titles, including 14 French Open titles.
However, he has frequently struggled with injuries in recent years and is currently ranked No 158 in the world.
Nadal previously suggested that 2024 would be his final year in tennis.
He only competed at one of the four majors this year – the French Open, in which he was beaten by Alexander Zverev in the first round.
Nadal discussed the possibility of retirement after losing to Novak Djokovic in the second round of the singles tournament at the Olympics.
Speaking in late July, he said: ‘I try to look forward. I gave myself until the Olympics.
‘When this tournament is over, I will take the necessary decisions based on my feelings and desire. It is difficult to recover if I am thinking about whether I retire.
‘For many people it makes little sense, I have been suffering for two years.
‘If I feel that I am not competitive I will make the decision to stop. I just try my best every single day, trying to enjoy a thing that I have been enjoying for so much time.
‘I have been suffering a lot of injuries the last two years.
‘So if I feel that I am not competitive enough to keep going or physically I’m not ready to keep going I will stop and let you know.’