Sule’s contract will expire at the end of the season but he has been unable to agree fresh terms with his current employers.
The 26-year-old Germany international joined the Bavarian for €22m from Hoffenheim in the summer of 2017 and has made 158 appearances in his time at the club.
Sule has won four Bundesliga titles, one UEFA Champions League, three DFB-Pokals among numerous other honours at Bayern but will have to find a new club in the summer.
Bayern Munich CEO Oliver Kahn confirmed the news in a press conference on Wednesday.
“The negotiations with Niklas dragged on for a very long time. We made him an offer. He didn’t accept it. He wants to leave the club at the end of the season,” he said.
“We have a certain responsibility when it comes to the offers. We have to stick to certain financial conditions. It’s normal in this business that you’ll not always reach an agreement.
“We made Niklas a very, very good offer. He’s been solid and playing with confidence lately. We still need that from him for the rest of this season. But we have certain economic limits. Sometimes you just don’t reach an agreement, it happens.
“The talks with Niklas went on for months. I think he has shown very good performances here in the past five years. He’s one of the best center-backs out there right now. I think we always showed him respect and appreciation.”
