The 24-year-old's intention to depart comes amid reports of a summer transfer to Old Trafford and follows Jurgen Klopp's announcement that he is stepping down.
Borussia Dortmund have confirmed that Ilkay Gundogan will be not extending his contract beyond the end of next season.
Manchester United have been heavily linked with a summer move for the midfielder, with reports in Germany last week claiming a deal had already been done with a view to a transfer at the end of the season.
Dortmund immediately moved to play down the speculation with CEO Hans-Joachim Watzke insisting there had been "zero contact" with United, though sporting director Michael Zorc admitted that a final decision on Gundogan's future was imminent.
And the Bundesliga giants have now revealed that the 24-year-old will not consider extending his current contract beyond the summer of 2016, leaving a transfer away from the club this summer highly likely.
"Borussia Dortmund and midfielder Ilkay Gundogan will not agree on a June 2016 extension," the club posted on their official Twitter account, before adding: "Gundogan has decided not to renew his contract valid until that date."
Gundogan's intention to depart follows coach Jurgen Klopp's announcement earlier in April that he will leave Dortmund after seven years in charge at Signal Iduna Park, and the futures of fellow stars Mats Hummels and Marco Reus remain uncertain.
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