Spanish midfielder Xabi Alonso has confirmed that he will retire at the end of the season after enjoying a stellar club career. 

The Bayern Munich star, who played in the club's 5-1 demolition of Arsenal on Tuesday in the Champions League, announced his decision in a cryptic message on his Instagram page on Thursday.

The former Liverpool and Real Madrid star took to Twitter on Thursday to post a black and white photo of himself, with the caption: 'Lived it. Loved it. Farewell beautiful game.'

This decision comes following reports in Germany back in January that Alonso approached the Bayern board and told them of his intentions to hang up his boots in June. 

Sport Bild reported that the Bundesliga giants accepted his decision but had kept the door open should he perform a U-turn and carry on playing.

But now it has been confirmed by Alonso himself following his social media message on Thursday morning. 

The Spanish playmaker told Bayern's official website that he wanted to finish his career at the highest level possible.

Alonso said: 'It wasn't an easy decision to make, but I believe it's the right time. I always thought it would be better to quit sooner rather than later. 'I still feel good, but I believe this is the right moment,' the 35-year-old told FC Bayern TV.

'I wanted to end my career still at the highest level, and Bayern is the highest level. I'm incredibly proud and happy to play for FC Bayern and to be a part of this family.' 

Alonso joined the Allianz Arena outfit in 2014 and he has helped Bayern win two Bundesliga titles and one German Cup.

'FC Bayern would like to thank a great player and person for representing FC Bayern to such a high standard both on and off the pitch. 

'Xabi Alonso is one of the greats of world football. He has won everything there is to win during his career. He's a thoroughly remarkable person, and a gentleman of the game,' Bayern chairman Karl-Heinz Rummenigge said. 

Alonso's decision to call time on his career comes after more than a decade of trophy-laden success at the top level. 

Having started his career at local club Real Sociedad, Alonso joined Liverpool in 2004 and was an influential part of the Reds side that won the Champions League final against AC Milan in 2005.

Alonso scored the equaliser as Liverpool fought back from a 3-0 down at half-time in Istanbul before going on to win on penalties.

While at Anfield, Alonso also picked up an FA Cup winners' medal and the UEFA Super Cup before returning to Spain in 2009 with Real Madrid.

Five years with the Spanish giants brought another Champions League crown for Alonso, as well as a league title and two Copa del Rey triumphs.