The 2019 world champion was contracted with the South Korean marque for next season, although the Estonian’s future at the team has long been uncertain.
The 17-time WRC rally winner raised eyebrows earlier this month when he revealed that he could sit out the 2023 WRC season for personal reasons.
In a release issued following Tanak’s run to fourth at Rally Spain, it was confirmed that the 35-year-old will exercise an option to end his contract with Hyundai a year early.
Tanak has scored five wins since joining Hyundai at the start of 2020, following spells at Toyota and M-Sport, with three of those arriving this season.
He has however been unhappy at the team this year, and been openly critical on several occasions of both Hyundai’s management and equipment after reliability issues plagued the start of the 2022 campaign.
“This is a personal decision and one that I have taken with careful consideration and respect for the team,” said Tanak.
“However, I feel that I am at a stage of my career where I need to embark on a new challenge.
“We have had a good partnership over the past three seasons, and I am proud of what we have achieved.
“We have worked hard together to overcome some difficult moments, and as we’ve shown this year we have moved in the right direction.
“The second part of this season has shown the performance level we can achieve when things click, but for me the time has come for something new.
“I thank the team for its understanding and wish them all well.”
Deputy Team Director Julien Moncet admitted it was a disappointment to lose Tanak from the team, but accepted the decision.
“Ott’s departure comes as a disappointment, but it is a decision we must accept and respect,” said Moncet.
“He is without doubt one of world rally’s finest drivers, as we have been fortunate to experience first-hand through the victories that we have achieved together over three seasons.
“It’s been a bit of a rollercoaster. Our first year working together was affected by the pandemic; this year we have faced a new raft of hybrid regulations which have certainly been challenging.
“Ott has shown real leadership to push himself and the team to find improvements and to return to winning ways.
“Recently, we have built some positive momentum with our Hyundai i20 N Rally1. We will miss him but it’s also an opportunity for us to regroup and rebuild.
“We were already giving serious thought to our crew composition for 2023 so this decision, while not being one that we wanted, opens different possibilities for us as we prepare for next season.
“We wish Ott and Martin the very best for their future.”
Tanak’s exit arrives just two weeks after Hyundai’s decision not to renew a deal with Oliver Solberg, who was sharing the team’s third car this season with Dani Sordo.
Hyundai is thought to be considering several drivers for its 2023 line-up, with former Hyundai and Volkswagen WRC driver Andreas Mikkelsen among the favourites to land a drive. Ex-Citroen driver Kris Meeke is also on the team’s shortlist.
