The 39-year-old winger -- Sevilla and the Spanish national team's most-decorated player -- will officially retire when his contract expires on December 31 due to a painful and chronic hip injury which has plagued him in recent seasons.
Kylian Mbappe scored a screamer and set up another goal as Real Madrid thrashed Sevilla 4-2 on Saturday to move second in La Liga above stuttering rivals Barcelona.
"Sergio Ramos has informed Sevilla FC that he will not stay next season," the club said in a statement.
The player's contract was set to expire at the end of the campaign.
Antoine Griezmann struck a hat-trick in a 3-0 win over 10-man Celta Vigo to help Atletico Madrid climb provisionally second, in hot pursuit of their city rivals.
Sergio Ramos has not played against Real Madrid since 2005 but on Saturday, his Sevilla team welcome the Spanish league leaders to the Sanchez-Pizjuan for a reunion.
Al-Hilal have signed Morocco goalkeeper Yassine Bounou from Spanish side Sevilla on a three-year contract, the Saudi Pro League club said on Thursday.
His message was one of pride, which is what he has restored at Roma, a team which has one of Italy's largest, most passionate fan bases but has won little of note since being founded in 1927.
Sevilla beat AS Roma 4-1 on penalties on Wednesday to win the Europa League for a record-extending seventh time, handing Jose Mourinho his first defeat in six European finals.
Samir Nasri missed a second-half penalty as Sevilla squandered the chance to close to within a point of La Liga leaders Real Madrid with a 0-0 draw home to Villarreal on Sunday.
Sevilla made Argentine midfielder Walter Montoya their third signing of the January transfer window on Saturday on a four-and-a-half year deal from Rosario Central.
Lionel Messi, Luis Suarez and Neymar were all on target as Barcelona shrugged off the loss of the injured Sergio Busquets to remain just two points behind La Liga leaders Real Madrid with a 4-0 win at Eibar on Sunday.
Sevilla produced another late fightback to remain just one point behind La Liga leaders Real Madrid after twice coming from behind to edge out rock bottom Osasuna 4-3 on Sunday.
Sevilla strengthened their grip on third in La Liga thanks to captain Vicente Iborra's hattrick in a 3-0 win at Celta Vigo on Sunday.
Borussia Dortmund set a new Champions League scoring record in a 2-2 draw against Real Madrid on Wednesday while FC Porto and Sevilla claimed the two remaining last-16 spots.
Sevilla midfielder Samir Nasri has returned to training and is a step closer to making his comeback when his team plays at Olympique Lyon in Wednesday's Champions League game, the Spanish club have announced.
Steven N'Zonzi's winner 17 minutes from time ended Atletico Madrid's unbeaten start to the season and sent Sevilla top of La
Luis Enrique wants his players to take the plaudits as Barcelona crush Sevilla 3-0 to win their 12th Spanish Super Cup.
Three points from Barcelona's 3-0 win over Sevilla at the Camp Nou secures the Spanish Super Cup with a 5-0 aggregate victory.