Guti, who won the Champions League on three occasions and five La Liga titles with Real Madrid, has retired from football.
"The decision has been made," Guti said in statement on Marca.com. "I have received offers but I've decided to stop. I can now spend more time with my family.
"I'm going to train to become a sporting director or a coach and I'd like to train youngsters.
"I'd really like to coach the Real Madrid youth team. That's my dream."