The announcement comes during a busy period of goodbyes at the Santiago Bernabeu, with Dani Carvajal set to be honoured in Saturday night's final match against Athletic Club, while manager Alvaro Arbeloa also confirmed his departure earlier on Friday.
In an official statement, Real Madrid confirmed that Alaba's exit had been agreed by mutual decision, bringing an end to his five-year spell in Spain. Club president Florentino Perez paid tribute to the Austrian defender, highlighting both his influence on and off the pitch.
"David Alaba has earned the affection of all Madrid fans for his dedication, his hard work, and for an iconic image on our path to the Fourteenth European Cup, which symbolized the celebration of a victory and is now part of our club's history," Perez said. "Real Madrid will always be his home."
Alaba joined Real Madrid on a free transfer from Bayern Munich in 2021 and went on to make 131 appearances for the club. During his time in Spain, he scored five goals and provided nine assists, while collecting an impressive 11 major trophies.
His honours include two Champions League titles, two La Liga crowns, two Spanish Super Cups, one Copa del Rey, two UEFA Super Cups, and two Club World Cups. He was a key figure in the 2022 Champions League-winning side, playing a major role in their European success.
However, the second half of his Real Madrid career was heavily affected by knee injuries, which limited his consistency and availability.
Alaba's departure closes a significant chapter at the Bernabeu, but the 33-year-old still has a major international role ahead. He is expected to captain Austria at the upcoming 2026 World Cup, as he begins the next stage of his career away from Madrid.