Bayern Munich have withdrawn their offer of a new five-year contract for defender David Alaba.

The 28-year-old, who has been at Bayern since 2008, sees his current deal run out in 2021 and talks over a new contract have dragged on for months, reportedly due to the player's annual salary.

If he doesn't sign a new deal he will be a free agent next summer and has been linked with a move to the Premier League to join either Liverpool or Manchester City.

"We submitted to David and his advisor some time ago what we think was a very good offer," Bayern president Herbert Hainer told broadcaster BR on Sunday.

"During the last meeting we had said we wanted clarity by the end of October. We did not hear anything until yesterday and we contacted his advisor.

THE ANSWER WAS THAT THE OFFER WAS STILL UNSATISFACTORY AND WE SHOULD THINK ABOUT IT AGAIN. WE THEN DECIDED TO TAKE THE OFFER COMPLETELY OFF THE TABLE. THIS MEANS THERE IS NO LONGER AN OFFER.

Alaba, who can operate both as a full-back or central defender, has won two Champions League titles with the club as well as nine league titles and six German Cups.