The 38-year-old has won eight trophies during two long spells covering 17 seasons at the team where he started his career.
"Navas will leave Sevilla at the end of the 2023/24 season... the captain told the club, his teammates and the coaching staff at the training session this morning," said Sevilla in a statement.
Navas has played 688 games for Sevilla across all competitions, making his 500th appearance in LaLiga for the Andalucian side in midweek.
The veteran has scored 39 goals and provided 119 assists in his time at Sevilla, starting his career as a winger and later playing at right-back.
Navas has earned four Europa League titles, two Copa del Rey triumphs, the European Super Cup and the Spanish Super Cup during his time at the club.
In 2013 Navas departed for Manchester City, where he won the Premier League and two League Cups, later returning to Sevilla in 2017.
Navas has won more trophies and played more matches for Sevilla than any other player in the club's history.
With Spain the defender won the World Cup in 2010, the European Championship in 2012 and the Nations League in 2023.