Manchester United have been informed that Wayne Rooney will not sign a new contract with the club, according to reports from the Press Association.
The 24-year-old striker's current deal runs out in the summer of 2012 and it is understood negotiations over a new contract have broken down.
There has been speculation that Rooney will be sold in the January transfer window, with Real Madrid interested.
However, United's response was to label that claim as "nonsense".
Rooney's relationship with United manager Sir Alex Ferguson has been under scrutiny in recent weeks.
The striker missed United's Premier League fixture at Everton last month after allegations about his private life and he was then left out of subsequent games by Ferguson, who claimed the England international had an ankle injury.
However, last Tuesday, after England's 0-0 draw against Montenegro in a Euro 2010 qualifier at Wembley, Rooney contradicted the Scot's statement and insisted he was fit and had not had any ankle problem.
On Saturday, Rooney, who has scored only one goal in five Premier League appearances for United this season, was left out of the starting line-up for the 2-2 draw with West Brom.