Bayern Munich have withdrawn their offer of a new five-year contract for defender David Alaba.
The 28-year-old, who has been at Bayern since 2008, sees his current deal run out in 2021 and talks over a new contract have dragged on for months, reportedly due to the player's annual salary.
If he doesn't sign a new deal he will be a free agent next summer and has been linked with a move to the Premier League to join either Liverpool or Manchester City.
"We submitted to David and his advisor some time ago what we think was a very good offer," Bayern president Herbert Hainertold broadcaster BR on Sunday.
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"During the last meeting we had said we wanted clarity by the end of October. We did not hear anything until yesterday and we contacted his advisor.
The answer was that the offer was still unsatisfactory and we should think about it again. We then decided to take the offer completely off the table. This means there is no longer an offer.
Alaba, who can operate both as a full-back or central defender, has won two Champions League titles with the club as well as nine league titles and six German Cups. He said he heard about Bayern's decision from the media.
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"I heard it like everyone else on the news," Alaba told a press conference ahead of Bayern's game at Salzburg in the Champions League on Tuesday.
"I cannot say how it will continue from this point. I am glad to be playing for Bayern, and to be a part of the team. But what the future will look like after yesterday evening I just cannot say, as no one has talked to me officially."
Alaba was upset that the club never shot down the reported salary figures mentioned in German media, saying he had wished Bayern had done it so that his image with fans was not damaged.
"I can completely understand the fans. I wish internal stuff would stay internal. The numbers out there do not correspond to reality and I am a bit disappointed and sad that the club never officially came out to say they are wrong."