Gianluigi Donnarumma has informed AC Milan that he will not be extending his contract with the Serie A club, opening up the prospect of a transfer this summer.
Donnarumma's current deal with Milan runs for one more season, but there is little likelihood of them keeping hold of the goalkeeper only to see him walk away on a free transfer next June.
The 18-year-old's agent Mino Raiola spent around 40 minutes in talks with Rossoneri management on Thursday, and the club's general manager Marco Fassone emerged soon after to announce that no negotiations over a new contract will take place.
"Mino Raiola has told me Donnarumma's decision not to extend [his contract]," Fassone told reporters outside Casa Milan, reports La Gazzetta dello Sport. "The decision is final."
Sources told ESPN FC that Donnarumma was willing to accept an offer from Milan, but Raiola was insistent on the inclusion of a release clause thought to be around €40 million, while Milan would only accept a clause in the range of €100m.
Thursday's developments are set to spark a scramble for Donnarumma's services, with many of Europe's top clubs interested in a man tipped to succeed Gianluigi Buffon as Italy's next No. 1.
Marco Fassone: "Donnarumma ha deciso di non rinnovare" ➡️ https://t.co/FGEFFsM3hT
- AC Milan (@acmilan) June 15, 2017
Buffon last weekend backed Juventus to sign Donnarumma as his eventual successor, after Raiola said two weeks ago that 11 top clubs are interested in the young stopper: Manchester United, Manchester City, Barcelona, Real Madrid, Atletico Madrid, Bayern Munich, Juventus, Napoli, Liverpool, Paris Saint-Germain and Everton.
Man City have since signed Benfica goalkeeper Ederson Moraes for €40m, while Everton sealed a deal for Sunderland's Jordan Pickford on Thursday.
Milan had pulled out all of the stops in a bid to convince Donnarumma his long-term future was with them, but despite making an improved offer earlier this week, they did not ultimately succeed.
"In the past few days, sporting director Massimiliano Mirabelli made a very big offer to the player, who evaluated it and today he informed us that he did not intend to renew," added Fassone. "We were confident that Gigio would be the goalkeeper of this new Milan; a pillar upon which we would build, but now we have to re-evaluate everything.
"This decision, taken by the player and his agent, is disappointing, but we have to move on; Milan move on."
Milan are attempting to rebuild their squad after another disappointing league season saw them finish sixth in the table. The position was enough to book Europa League football, but under new Chinese owners, the Rossoneri are determined to return to the years of multiple titles and European success.
To that end, highly-rated Portuguese striker Andre Silva, Ivorian midfielder Franck Kessie and accomplished defenders Ricardo Rodriguez and Mateo Musacchio have already been expensively recruited, but Milan will need to invest in a new top-class keeper if Donnarumma leaves this summer.
Former Milan goalkeeper Giovanni Galli said Donnarumma had a "duty" to explain why he wanted to leave Milan.
"I want people to realise, and all agents to realise, that we are talking about Milan here and not any old club," Galli told Mediaset Premium. "This club has won seven European Cups and represents Italian football. There must be respect for a club that has given a teenager this incredible opportunity to play regularly in Serie A.
"If he wants to earn more, that's one thing, but saying he won't sign a renewal regardless of the terms is not fair. At this point, I want to know the real reasons he is not signing a renewal.
"Donnarumma is 18 now, he's an adult, so he has the right and above all the duty to explain his decision."
ESPN FC senior write Gabriele Marcotti contributed to this report.