Martin Demichelis will leave Manchester City when his contract expires this summer.
Demichelis, 35, will not be offered a new deal by the club when his current contract runs out on June 30, a source has told ESPN FC.
The defender could return to his native Argentina with his former club River Plate after revealing he almost joined the Buenos Aires side last summer.
The former Bayern Munich player has also been linked with a move to La Liga club Valencia, who are also reportedly interested in outgoing City boss Manuel Pellegrini.
Demichelis made 106 appearances for City after joining from Atletico Madrid in September 2013.
On Wednesday, he was fined £22,058 after accepting a charge of misconduct in relation to betting, the Football Association announced.
Meanwhile, City goalkeeper Richard Wright is set to retire after four years at the club without making a first-team appearance.
The 38-year-old former England keeper was given a one-year contract last summer, but will not be offered a new deal.
Wright's son Harry, himself a goalkeeper at Ipswich Town, posted on Instagram: "What a career my dad has had as a professional footballer playing at every level. Gutted for it to be his last game as a professional footballer but can't wait to see what's in store for him."