Bayern Munich chairman Karl-Heinz Rummenigge has confirmed Thiago will not sign a new contract and is expected to leave the club.
The midfielder joined the German giants from Barcelona in 2013 and has one year left on his current deal.
Thiago, 29, has recently been linked with a move to Premier League champions Liverpool, and Bayern have accepted that his departure is imminent after sporting director Hasan Salihamidzic's failed attempts to convince him to sign an extension.
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