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The 34-year-old Spanish international played a total of 450 matches for the "White Ballet," securing 27 trophies, including six Champions League titles and four La Liga championships. He is a product of the club's renowned youth academy, La Fabrica.
"Carvajal is a legend and a symbol of Real Madrid and its academy," stated club president Florentino Perez.
After transferring from the academy to Bayer Leverkusen in 2012, Carvajal returned to Los Blancos a year later and has remained there ever since. "Real Madrid wishes to express its gratitude to one of the greatest legends of our club and world football," the club announced in a statement.
Carvajal had hoped to represent Spain at this year's World Cup, but a series of injuries plagued his disappointing season, leading coach Luis de la Fuente to omit him from the extended squad. He will play his final match for Real this weekend at the Santiago Bernabéu against Athletic Bilbao in La Liga. The Madrid giants will conclude their second consecutive season without a major trophy.
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