Barnsley have withdrawn their new contract offer to Jacob Mellis following the midfielder's request to leave the club.
The 23-year-old's contract expired at Oakwell this summer and the club's plans to keep hold of the former England youth international have been dashed following a meeting with the player.
A club statement read: " Club officials met with Jacob Mellis and his parents on Friday, June 27.
"During the meeting it became clear that Jacob felt he needed a fresh challenge and that he would prefer to leave the club than be part of the club's League One campaign.
"The club have therefore decided to withdraw the offer of a new contract to Jacob and he will now pursue opportunities away from Oakwell.
"Jacob's decision is disappointing after the opportunity that the club afforded him over the last two seasons.
"However, the club are only interested in having players completely committed to ensuring next season is as successful as possible and the club ultimately return to the Championship."
Mellis hit the headlines in March 2012 when he was released by Chelsea after he had set off a smoke grenade at the club's training ground.
He made 15 appearances during a loan spell at Barnsley in 2011 before signing a permanent deal at the club in June 2012.
Mellis made one senior appearance for Chelsea in a Champions League group match in 2010 and had a stint on loan at Southampton in 2009.