The versatile defender is said to have rejected multiple extension offers and is ready to end his long association with the Bavarian side.
Bayern Munich are on good terms with David Alaba after the failed negotiations over a contract extension, assures club president Herbert Hainer.
Alaba is out of contract at the end of the season and has been heavily linked with a move away from the Allianz Arena.
Real Madrid appear the frontrunners to land the Austria international, though Liverpool, Chelsea, and Paris Saint-Germain, among others, are also understood to be in the race.
Bayern, despite multiple attempts, have been unable to convince the 28-year-old to put pen to paper on fresh terms.
Alaba’s representative is said to have turned down a three-year extension worth €20 million a year, and the club president feels the player and his agent are at odds regarding their demands for a new deal.
Hainer told Bild am Sonntag: “I emailed him congratulations on being voted Austria’s Footballer of the Year. I had an answer within 15 minutes. He was happy.
“We didn’t talk about his contractual situation anymore. The mood is okay. You have to deal with it professionally.
“He and his advisor had different ideas about the financial structure of a new contract.”