Manchester United wanted to keep Juan Mata and ease him into an administrative role.
United confirmed on Thursday Mata, 34, would leave the club when his contract expires on June 30 after eight-and-a-half years at the club.
When Mata signed his last United contract in 2019 the club's offer included an ambassadorial role but United were hopeful of arranging a more senior title for Mata.
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United were prepared to offer Mata one more playing contract but he declined as he wants to play regularly and has received offers from the MLS.
United are hopeful Mata could return to the club in the future and believe he has potential as a technical director when he retires. Mata's teammates from Spain's 2010 World Cup-winning squad, Xabi Alonso and Xavi have embarked on coaching careers while Carles Puyol has set up an agency.
In a video address to supporters recorded after his final appearance at Old Trafford against Brentford last month, Mata said: "I wanted to say thank you very much to all of you for your support over the years and especially during the difficult times that we lived together.
"I will never forget you. Thank you very much from the bottom of my heart and goodbye."
Mata joined United for a then-club record £37.1million from Chelsea in January 2014 and started in their three cup final victories in the FA Cup, League Cup and Europa League in 2016 and 2017.
The Spaniard played 285 times and scored 51 goals for United.
