He also won multiple trophies at Spanish champions Real Madrid, including one league and two Champions League titles.
Arbeloa signed a one-year contract at West Ham after being released from Madrid last August but made just four appearances for the London side.
"It's time to say goodbye," Arbeloa told Marca. "Physically I was ok to keep playing."
Arbeloa made more than 150 appearances for Madrid in two stints at the club and is open to a return to the Bernabeu.
"Madrid is the club of my life, I will never call to ask for a job, but I am always available to offer myself," Arbeloa added.
(Reporting by Aditi Prakash in Bengaluru; editing by Amlan Chakraborty)
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