Cazorla hasn't featured for the 'Gunners' since sustaining an Achilles injury in October 2016 and will play no further part after his contract reached its end date.
The injury-prone star was a firm favourite amongst supporters up till them, scoring 29 goals in 180 appearances since signing from Malaga in 2012.
On the decision, Arsenal's chief executive Ivan Gazidis wrote: "Santi is always one of my favourite players to watch.
"His natural ability with both feet, his speed of thought and movement were central to our best performances in recent years.
"He plays with a joy and freedom which is very rare. We wish him well for the future and thank him for his important contribution to our club."
In the statement, the 'Gunners' highlight Cazorla's best moment with the club: a sublime free-kick in the 2014 FA Cup final which sparked an unforgettable comeback.
May 21, 2018