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"He is not in the right condition to contest a match of the intensity of a quarter-final, " Ruiz-Cotorro explained.
BBC: Nadal handed bye into semi-finals
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"Rafa comes in off a very tough year and his body has been warning him for weeks, " Ruiz-Cotorro said.
BBC: Nadal will miss Davis Cup final
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Tournament doctor Angel Ruiz-Cotorro said Nalbandian, who went through to the last eight when he beat Spanish 10th seed Almagro 6-3 6-4, had sustained an inflammation of the right hip.
BBC: Nadal handed bye into semi-finals
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Spain team doctor Angel Ruiz-Cotorro said Nadal would need three to six weeks to recover and although the injury is not career threatening, playing against Argentina in the Davis Cup later this month was not worth the risk.
BBC: Nadal will miss Davis Cup final