Garca, now 37, left Atletico Madrid for Athletic Bilbao in the summer of 2015.
The veteran has made one assist in 18 competitive appearances for the La Liga club this season.
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Now Athletic Bilbao announces via its official channels that Garca has decided to hang up his boots this summer.
"The decision did not depend on winning the title or not, but this is a beautiful culmination of my career," says Garca, referring to the Copa del Rey triumph.
"I want people to feel proud that I have worn this shirt and defended the club's values from day one. I have given my all, always thought of my teammates and the club."
The 37-year-old has managed to score 83 goals and 40 assists in a total of 356 competitive matches for Athletic Bilbao.