Nadal last played at the Paris Olympics where he lost to Novak Djokovic in the second round before the Spaniard skipped the US Open due to concerns about his fitness.
The 22-time Grand Slam winner said at the time that he was targeting a return at the September 20th-22nd Laver Cup in Berlin.
"I'm really disappointed to share that I won't be able to compete at the Laver Cup in Berlin next week," Nadal said in a statement.
"This is a team competition and to really support Team Europe, I need to do what's best for them and at this moment there are other players who can help the team deliver the win.
"I have so many great, emotional memories from playing Laver Cup and I was really looking forward to being with my teammates and with Bjorn in his final year as Captain. I wish Team Europe the very best of luck and will be cheering them on from afar."
Nadal last played at the Laver Cup in 2022, when he teamed up with his rival Roger Federer in the Swiss great's final match of his career.
A former world number one, Nadal has fallen outside the top 150 in the rankings after struggling with injuries for two years.
