Borussia Dortmund sporting director Michael Zorc has confirmed that Shinji Kagawa will not be signing a new deal with the club.
The 23-year-old has one year remaining on his contract, and the Bundesliga champions had hoped that they could convince him to stay.
However, the talented wideman is expected to leave at the end of the season, with Manchester United emerging as the favourites.
"I had a meeting on Monday morning with his agent - Shinji Kagawa told him that he definitely will not extend his contract with us. Should offers come now for Kagawa, we will deal with them and negotiate," Zorc told Revier Sport.
Kagawa has scored 13 goals in 31 league matches this season.