"Dear football, the current state of my right ankle, according to medical reports, has come to a point where it has forced me to say goodbye as a professional football player," said the 31-year-old on his Twitter account.
Miguel Perez Cuesta, better known as Michu, began his career at his home club Oviedo before moving to Celta Vigo and Rayo Vallecano.
He signed for Premier League side Swansea City in 2012, before going on loan to Serie A side Napoli in July 2014.
After his contract with Swansea terminated in November 2015, Michu returned home to his native Asturias in the north of Spain, first with amateur side Langreo and last season with Oviedo in the second division.
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