The 24-year-old had been unable to agree an extension to his current deal with the Bundesliga leaders which expires in June 2009.

A statement on Bayern's official website, www.fcbayern.de, read: "The talks between Bayern and Philipp Lahm about an early extension to his contract have not led to a agreement.

"The record champions therefore on Tuesday withdrew their original offer."

Bayern may now look to sell the sought-after defender in the summer to avoid losing him on a free transfer at the end of next season.

And Lahm admitted it was likely he would be on his way this summer.

Asked in the latest issue of Stern magazine if he would be leaving the DFB-Pokal winners at the end of the current campaign, he said: "That is very possible."

Lahm, who can play on the left or the right of the defence, started his career with Bayern but first came to prominence during a two-year loan spell with Stuttgart.

Since returning to Bayern in 2005, he has established himself as one of the most promising attacking full-backs in Europe.

Lahm, who scored the opening goal at the 2006 World Cup with a fine strike against Costa Rica, revealed he was keen for a move away from the Bundesliga.

He added: "I stand by my decision; my career plan allows that I will leave Bayern at some point, and not only when I have passed my peak.

"I played for two years at Stuttgart and I am now in my third year of playing for Bayern, the best team in Germany.

"Therefore it is the logical next step to move abroad."

Lahm claimed his desire to win the Champions League was behind his eagerness to quit the Allianz Arena.

He added there were "a handful of teams" who had more financial clout than the Bavarian giants.

"These teams play with yet more tempo and security," he added. "And for every professional the biggest motivation is to win titles - above all the Champions League.

"The bigger the club, the greater the probability that you will win it."

And the full-back admitted he does not think Bayern have what it takes to go all the way in Europe's premier competition next season.

"I don't believe that we will be able to make it to the Champions League final in 2009," he said.

Lahm claimed incoming coach Jurgen Klinsmann would not be able to persuade him his future lies at Bayern.

He said: "I won't make it (a decision) dependent on the question of the coach."