Gloucester have confirmed that fly-half Freddie Burns will leave the club at the end of the Premiership season.
The 23-year-old playmaker, who is out of contract at the end of the current campaign, has been in ongoing discussions with the Cherry and Whites.
However, the club has now announced that an agreement was not reached and, by mutual consent, both are pursuing alternative options.
"A number of players are out of contract at the end of the season, and I've been pleased to date with those who have re-signed, including the likes of Sione Kalamafoni, Henry Trinder and Billy Twelvetrees," said director of rugby Nigel Davies, speaking to Gloucester's official website.
"Attention has naturally turned to Freddie Burns' situation and, despite lengthy dialogue, we have decided to part company.
"Therefore, we feel that it is important to clarify the situation. Doubtless, a statement on Freddie's future club will be made in due course. However, in terms of Gloucester, we know where we stand and we will move forward accordingly.
"As always, any statement regarding player signings will made via official channels at the appropriate time.
"Freddie has made a tremendous contribution to Gloucester Rugby and, when he does leave us at the end of the season, everyone at the Club will wish him well.
"Until that time however, I know that Freddie will be fully committed to Gloucester Rugby and that he will be determined to help us be as successful as possible this season."
Burns meanwhile has given his full commitment to the Kingsholm club until he departs.
"I've had a lot of things to consider regarding my future in recent months, and it's not been easy. But I'm still a Gloucester player and will be giving it 100 percent, as I always have done, whenever I pull on the shirt," he said.
"Gloucester have been incredibly supportive, they have been ever since I first joined the club. I have so many people to be grateful to. Whatever happens in the future, it all started here for me and I'll always be thankful for that."