Fabio Aurelio turned down the offer of a pay-as-you-play deal with Liverpool on Tuesday and will leave the English Premier League club next week, DPA reported.
The Brazilian defender has been hampered at Anfield by injury, and he has not played since sustaining a thigh problem in February.
Liverpool offered the 30-year-old a deal based on the matches he played, but he wanted something more permanent and decided to end his four-year stay at the club.
"Fabio's contract is nearly finished and he is going to leave us," said Liverpool manager Rafa Benitez.
"We had been trying to work something out with regards an extension but it was a pity that we couldn't.
"He has given us absolutely fantastic service. The one problem we had with Fabio was that he suffered too many injuries and it was such a pity because he has great quality.
"You are talking about an amazing person who gave 100 per cent all the time. We wish him all the best," said Benitez.
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