Malaga withdraws as host stadium for World Cup 2030
Spain had put forward 11 stadiums to be used, including La Rosaleda in the south coast city.
However Malaga mayor Francisco de la Torre said hosting matches could cause problems for the city's club and fans, because of reconstruction work needed on the stadium.
"Choosing between the World Cup and the club, we choose the club and the fans," said De la Torre after a meeting with the Malaga council and the regional government of Andalusia.
"After (several) meetings... we believe that the most responsible, prudent and sensible thing to do today is to abandon Malaga's World Cup (hosting).
"If the World Cup is a risk for the club and a problem for the fans, it's not worth continuing with."
Malaga would have to play at a 12,500 capacity alternative stadium while reconstruction on La Rosaleda took place, and they currently have over 26,000 season ticket holders.
The works would have cost an estimated 270 million euros (US$316 million) but the mayor said the decision had not been made in order to cut costs.
"We want there to be a new stadium. It will not be for the World Cup but there will be, that's a firm commitment," added De la Torre.
"We're not doing this to save money but because it's for the best for the city, the fans and the club."
Spanish second division club Malaga competed in the Champions League in 2013 but subsequently dropped as low as the third-tier amid a financial crisis.
In March Spain's head of World Cup 2030 organisation Maria Tato resigned after being accused of fixing the process to decide which stadiums would host matches.
Newspaper El Mundo said ratings for potential venues were altered to favour Anoeta in San Sebastian, at the expense of Balaidos in Vigo.
The Galician city as well as east coast city Valencia are options to replace Malaga as a host.
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