Suarez was reunited with manager Unai Emery after playing under him at Sevilla during the 2014-15 campaign, but he failed to impress at the Emirates Stadium.
"I want you all to know that I will not be able to play again this season," Suarez wrote on Twitter.
"Some issues with my groin have made things tough since the game against BATE Borisov in the Europa League in February and now they have forced me to stop training altogether.
"After various medical consultations, the conclusion has been reached that I cannot keep on pushing it and I have started a period of treatment that cannot be done alongside competitive football."
Suarez has played just over an hour of Premier League football - all as a substitute - and will miss Arsenal's final two league games against Brighton on Sunday and Burnley on May 12.
He will also miss both legs of the Europa League semi-final against Valencia, with Emery's side fighting for a return to the Champions League next season.
Suarez's contract with Barcelona runs until June 2021 but Arsenal have an option to buy the player when his loan expires at the end of the campaign.
(Reporting by Hardik Vyas in Bengaluru; Editing by Andrew Cawthorne)
