Breaking: Donnarumma will leave Milan, Real offering big wages
The news was announced by CEO Marco Fassone, who revealed: "we're disappointed. Mino Raiola [his agent] has communicated Donnarumma's decision not to renew his deal".
The 18-year-old's deal expires next summer, prompting the Rossoneri to make an improved offer. Real Madrid are rumoured to be offering the sensational shotstopper €6 million a year, plus bonuses.
The young goalkeeper has also been pursued by the likes of PSG, Juventus, Bayern Munich and Manchester United, and agent Raiola had made it clear in the past that he wanted his client to sign with a great team, not wait for the Rossoneri to return to elite status.
"The decision is definitive," Fassone continued.
"Rather than issue a press release, I preferred to speak a little about the meeting we had today with Mino Raiola.
"Ten days ago, [sporting director] Mirabelli had made an offer which we believed to be important. After considering it a few times, the player decided not to accept it, and told us that he will leave the club next summer, on June 30th, 2018".