He has had to pull out of 10 tournaments for a combination of hip, knee, stomach and ankle problems, as well as fatigue, and also had to retire through injury in his Australian Open quarter-final and US Open semi-final. The Serbian will now become the first player since ATP rankings were introduced in 1973 to end the year at number one having started it outside the top 20.
"Unfortunately I had the abdominal problem in Paris last week and I also have an issue in the ankle joint that has to be removed in the operating room today", the 17-times Grand Slam victor wrote on Twitter.
Novak Djokovic reclaimed the world No.1 ranking on Monday after a two-year absence and is assured of finishing the year there.
This way I hope to be in top conditions for next season.
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"Reflecting on what I've been through in the previous year, it's quite a phenomenal achievement", Djokovic said.
"I'm very, very happy and proud about it".
Nadal's decision means that Novak Djokovic is guaranteed to end the year as the leader of the world rankings. But he competed in only three events after the French Open in June. Anderson came from two sets down to defeat Federer in their Wimbledon quarterfinal in July.
"Karen played really well and he deserved to win that match", said Djokovic, who defeated Switzerland's Roger Federer in a grueling match the day before to reach the finals.
Dominic Thiem has also had a great season, reaching his first Grand Slam final at Roland Garros and improving a lot on hard courts with a first indoor title in St. Petersburg.
Armenian Karen Khachanov, a rising star in the world of Tennis from Russian Federation, defeated incoming world champion Novak Djokovic to win his first Masters 1000 title at the Paris Masters, reported the BBC.