The 38-year-old Spaniard has not played since his defeat alongside compatriot Carlos Alcaraz in the quarter-finals of the men's doubles at the Paris Olympics in August.
A 22-time Grand Slam singles champion, Nadal did not confirm any specific injury or health concerns but he has previously indicated 2024 would be his last season
Nadal said as cited by Sports Central: "I'm really disappointed to share that I won't be able to compete at the Laver Cup in Berlin next week. "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."
The Laver Cup, contested between Team Europe and Team World, starts in Berlin on 20 September.
Having hoped to play a full schedule in 2024, Nadal only competed at one of the four majors - the French Open, where he lost in the first round to Alexander Zverev.
After missing Wimbledon to focus on the Olympics, Nadal was hampered by a thigh problem in Paris and suffered a second-round loss in the men's singles to eventual gold medallist Novak Djokovic.
Nadal, who has previously made three Laver Cup appearances: "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."
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