Raul has ruled out a move to Blackburn Rovers insisting he will stay at Schalke.
Blackburn have been lining up an ambitious move for the former Spain international as they look to bring in a high-profile signing this summer, while Paris Saint Germain and Malaga have been credited with an interest in his services
Raul met club officials this week to resolve his future after he was left out of the squad that lost 2-0 away to HJK Helsinki in the first leg of their Europa League play-off in midweek.
The 34-year-old has moved to end speculation over his future by revealing he will fulfil his contract until 2012 with Schalke.
"I will be staying definitely at Schalke and I will fulfil my contract," Raul told the club's official website.
"I do not get tired of saying it again and again that I feel at home with Schalke.
"The affection the fans here have shown me is extraordinary and memorable."
The Spaniard denied any rift with Schalke coach Ralf Rangnick and claimed he had been left out of the squad that flew to Finland to improve his fitness.
"It's good, proper and professional, as it should be between a coach and a player," added Raul.
"There are no problems. We're all concentrating on working together to achieve the best for Schalke this season."
Schalke general manager Horst Heldt welcomed the news that Raul had pledged his future to the Royal Blues.
"This clarity was important because it means we can now put the subject to bed and turn our focus back to our most important task, that of achieving success on the pitch with FC Schalke 04," noted Heldt.