BAYERN MUNICH have withdrawn their offer of a contract extension for David Alaba.
The Manchester City and Liverpool target, 28, will be available on a free transfer when his contract expires next year.
Bayern president Herbert Hainer confirmed the club offered Alaba a 'very good' new deal.
But the German giants have now pulled the plug on the deal after Alaba's agent rejected their approach.
The Bayern chief told Bavarian outlet BR24: "We presented him with a really, very good, very fair competitive offer – especially during these times.
"We told David's agent during the last meeting that we wanted clarity and an answer by the end of October because we want to plan for such an important position and player.
"But we haven't heard anything until Saturday.
"Our sporting director Hasan Salihamidzic then contacted the agent and the answer was that the offer is still unsatisfying and that we should think more.
"We then decided to take the offer off the table completely.
"That means there is no longer any offer."
The Austrian was said to be demanding a mammoth £400,000-a-week to stay at the club.
He has been with Bayern Munich since he joined from Austria Vienna in 2008, aged 16.
Alaba has made over 400 appearances at the Allianz Arena and won 17 major honours.
But Manchester City boss Pep Guardiola is hoping to lure him to the Premier League.
The Bundesliga star has emerged as Guardiola's top target in his search for a new left-back.
City were heavily linked to him during the summer transfer window, but the move failed to materialise.
Jurgen Klopp's Liverpool side are also interested in signing the Austrian ace.
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