David Beckham's contract at Real Madrid will not be renewed, according to the club's sporting director Predrag Mijatovic.
Beckham's current deal expires in the summer and Mijatovic said that the former England captain would not be offered fresh terms.
Mijatovic said: ''Beckham will leave us. We will not renew his contract".
Real had previously stated their desire to resolve the long-running Beckham contract issue one way or the other by the end of next week, and further talks were thought to be due to take place.
But Mijatovic has decided to curtail negotiations with immediate effect.
Beckham joined Real in July 2003 from Manchester United and was quickly labelled as a 'galactico'. But he has failed to land a trophy at the Bernabeu.
Clubs from across Europe and the United States are believed to be monitoring Beckham's situation and may now make their move.
There is firm interest from clubs in England, Italy, France and the United States, and Beckham's representatives have been free to speak to other clubs from January 1.
Beckham's primary concerns are making sure that wherever he is he will get regular playing time, having been a bit-part player for the Spanish giants so far this season, and making sure his next move is the right one for his young family.
Mijatovic's declaration ties in with Real coach Fabio Capello's squad announcement for tomorrow's Copa del Rey game with Real Betis, where Beckham was one of six senior players left out.
Speculation is now rife as to where Beckham will go now.
MANCHESTER UNITED.
Beckham has indicated he would only return to England if it was to play for Manchester United but he burned his bridges with Sir Alex Ferguson before joining Madrid in 2003.
TOTTENHAM.
A more realistic proposition for Beckham. Martin Jol is keen to use English players in his side and the former England captain would be a real coup for Spurs.
NEWCASTLE.
Always keen to sign a big name, Newcastle would probably be prepared to break the bank - again - if presented with the chance to sign Beckham and team him up with Michael Owen again.
CELTIC.
Having succeeded in the past in attracting Roy Keane to the club, Celtic boss Gordon Strachan reportedly set his sights on Beckham before Christmas but has since played down the speculation, claiming: ''It was an off-the-cuff remark. I don't think that it is ever going to happen".
LOS ANGELES GALAXY.
A move to the United States is generally regarded as the most likely destination for Beckham and is now a viable option, following a change in the rules governing MLS franchises allowing them to self-fund the wages of one player beyond the basic league pay structure.
LYON.
Beckham's representatives admit there has been interest from France, Italy, England and the United States but only Gerard Houllier's side possess the finances and status to lure him, although the likes of Monaco and Marseille are bound to be linked with him.
INTER MILAN.
Like Newcastle, Inter are always interested in signing a superstar. Owner Massimo Moratti may be keen to bring in the experienced right-sided midfielder to bolster the squad as they push for the Serie A title.
AC MILAN.
Milan have been linked with more players than most this season as they continue rebuilding after the points penalty in the wake of last summer's match-fixing scandal. Beckham's ability to play both wide and centrally would suit Milan's unorthodox midfield shape.
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