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James Rodriguez will leave Bayern Munich on June 30, after asking the German club to not take up the option to sign him permanently from Real Madrid.
Bayern will not exercise their option to buy him on a €42m (£36.6m) permanent deal in the summer, after accepting the Colombia international's request.
"[Rodriguez] asked Bayern not to take up the contractually agreed purchase option with Real. This wish was met the Bayern," Bayern confirmed in a statement.
Rodriguez played 67 competitive games for Bayern Munich across two seasons, scoring 15 goals and registering 20 assists on his way to claiming two Bundesliga titles and a German Cup.
He had a successful first season with Bayern but struggled in his second under new manager Niko Kovac, who said in January: "He is playing for his future without a doubt. Everyone who wants a contract needs to be at his best at all times."
The 27-year-old will return to his parent club Real Madrid, where he spent three seasons after a £71m move from Monaco following a successful 2014 World Cup in which he finished top scorer with six goals.
Rodriguez's future at Real will be in doubt as Zinedine Zidane made it clear when he loaned out the attacking midfielder in 2017 that he would not be part of his plans.
The CEO of Bayern Munich, Karl-Heinz Rummenigge, said: "I thank James on behalf of FC Bayern Munich for two successful years. We have twice won the German Championship and the DFB Cup with him. In addition, we reached the semi-finals of the Champions League with him last season.
"James made an important contribution to all these successes. We wish James all the best for his future."
Rodriguez added: "My big thanks go to the entire club and the fans who have always given us great support. It was two unforgettable years for me in Munich and I have always felt very well here. I take the best memories and wish FC Bayern the best for the future. "
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