Bayern Munich will not exercise its option to sign James Rodriguez on a permanent deal, chairman Karl-Heinz Rummenigge has confirmed.

The Colombia international has spent the past two seasons on loan at the Allianz Arena from Real Madrid, winning two Bundesliga titles and a DFB-Pokal.

Bayern reportedly had the option to sign James for €42 million and Rummenigge claimed as recently as March that the club was hopeful of making his transfer permanent.

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However, it has now been revealed that will not be the case, with James having told Bayern he did not wish to stay.

Rummenigge told Sport 1 : "In principle, the decision was made because he [James] came to me before the end of the season and asked me not to activate the option.

"His agent [Jorge Mendes] also called me again last week. Activating the option now against his will makes no sense.

"You should not hire a player for €42million with an appropriate salary if you cannot offer him a firm position."

James has been linked with a switch to Napoli and a reunion with his former Madrid boss Carlo Ancelotti, the man who brought him to Munich.

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He scored 14 Bundesliga goals in 43 appearances for Bayern and Rummenigge said the club's decision is not a reflection on his quality.

"I've always said that I'm a fan of his game culture. His left foot is exceptional, his scoring also," he added. "He was a high-quality player [for Bayern]."