The 35-year-old former FIFA World Player of the Year, who joined the Pireaus club in the summer of 2004, has been instrumental in the Greek champions' third successive league title triumph during his time at the club.

The former Barcelona and AC Milan forward had previously talked of ending his career in Greece with the 2007/08 season to be his swansong with one last stab at the Champions League.

But Rivaldo gave a tearful press conference to announce the news on Friday, accusing Olympiacos of going back on their promises concerning the details of his proposed contract extension.

However, the club issued a press statement on Saturday which aimed to set the record straight on their part.

"At yesterday's meeting between Rivaldo and vice-president Giorgos Louvaris - which was arranged despite the initial intention of the administration to discuss the subject of contract renewals after the handing-over of the championship - was proposed to the player the renewal of his collaboration with the club for one year, with the same terms that were also in effect in his current contract," said the club's statement.

"The player did not accept the particular proposal and consequently Olympiacos CFP would like to thank him for his efforts up to today and wishes him good luck with his career."

The news will come as a blow to the club's supporters, who were expecting their talisman to remain in Athens for one more season.

Although Rivaldo made no mention of his next destination, or indeed if he planned to hang up his boots, a return to his native homeland seems the most likely option for the maverick forward.