"Despite FC Barcelona and Lionel Messi having reached an agreement and the clear intention of both parties to sign a new contract today, this cannot happen because of financial and structural obstacles (Spanish Liga regulations)," FC Barcelona shared in a news release on its official website Thursday. "As a result of this situation, Messi shall not be staying on at FC Barcelona. Both parties deeply regret that the wishes of the player and the club will ultimately not be fulfilled.
"FC Barcelona wholeheartedly expresses its gratitude to the player for his contribution to the aggrandisement of the club and wishes him all the very best for the future in his personal and professional life."
Last month, ESPN reported Messi, 35, who spent the final four years of his youth career and entire senior career with the Catalan club, agreed to a five-year deal on Wednesday (July 14), just weeks after his previous contract expired.
Messi's previous contract, which was worth more than €500 million ($594m) during a four-year span, expired at midnight on June 30.
The forward was reportedly courted by Paris Saint-Germain and Manchester City amid reports of interest in ending his 20-year relationship with Barcelona last summer.
The report came after Barcelona was defeated, 8-2, by Bayern Munich in the Champions League, as well as a tumultuous relationship with former club president Josep Maria Bartomeu, which included Messi calling Bartomeu a "liar" in a September 2020 interview with Goal after Barcelona blocked the forward's departure.
However, Barcelona's decision to bring back former club president Joan Laportain March -- who had previously served the role from 2003-2010 -- is believed to have swayed the captain into returning for his 18th senior club season.
Messi was on holiday after leading the Argentina national team to its first Cope America championship since 1993 and the first of his international career when ESPN reported the contract extension last month.
Messi joined Barcelona's academy in 2000 and has appeared in a club-record 778 games, surpassing former teammate Xavi Hernandez's previous record last season.
The Argentinian forward has a club record of 672 career goals, leading Barcelona to 10 La Liga and four Champions League titles, while also winning a record six Ballon d'Or awards.