After his contract with the Ligue 1 champions expired this summer, the 37-year-old was reportedly in advanced talks with the Spanish club, according to a report on ESPN on Sunday.
“Sergio arrived at our youth academy at the age of seven and progressed through the youth ranks until he made his debut in the first reserve team at the age of 16 in the 2002-03 season,” Sevilla said in a statement.
“Our academy’s centre-back… returns home almost two decades after leaving at the age of 19 for Real Madrid.”
After being unable to reach an agreement to prolong his 16-year stint at Madrid, the defender left Madrid for PSG on a free transfer in 2021. In his two seasons in France, he won two Ligue 1 championships.
He played a total of 671 games and scored 101 goals while at Madrid, winning four Champions League titles and five LaLiga trophies.
Prior to declaring his retirement from international competition in February, Spain’s most experienced international player also won two European Championships and the 2010 World Cup.