James Rodriguez is expected to return to Real Madrid this summer after Bayern Munich decided against exercising their purchase clause, report Kicker.
The Colombian is entering the final months of a two-year loan deal at the Bavarian club and previously appeared to say that he is open to a return to Madrid this summer.
The German champions are said to hold a €35m option to sign him permanently but various reports over recent months have conflicted, and it is unclear if the club will now seek other options and allow the temporary deal to expire.
The 27-year-old has been in strong form recently but was dropped for Bayern’s recent crunch Bundesliga clash against Borussia Dortmund.
This fresh report now claims Bayern chiefs will look to reinvest elsewhere in their squad, with James lacking pace and not offering enough in defence.
The creative midfielder joined Bayern in the summer of 2017 on a two-year loan deal from Madrid but reports suggested he had fallen out of favour under boss Niko Kovac, who was appointed last summer.
James netted a hat-trick for Bayern in their recent 6-0 win over Mainz, prompting reports that he could remain in the Bundesliga.
The former Porto and Monaco star spent three seasons at Los Blancos, helping them to two European titles, but started just 13 La Liga games in his final campaign.