Hudson Young has made 155 appearances for Canberra since his NRL debut in 2019, but his long-term future with the Raiders is now uncertain.
The club has withdrawn a four-year extension worth a reported $1.1 million per season, its biggest contract offer ever.
Young, 28, is recovering from a ruptured Achilles and remains contracted to Canberra for 2027.
The Raiders announced the decision Monday afternoon after discussions with board members and senior management.
In its statement, the club said: "After discussions with members of the Board and senior management the Canberra Raiders have withdrawn their latest contract offer to Hudson Young."
"The club's offer to Hudson and his management was intended to keep him at the Raiders for the rest of his career, as an integral part of the club and a potential future leader."
"The offer that was made was the largest in club history. As a club, we believe we have done all we can to keep Hudson in Canberra."
"However, negotiations have been ongoing since June, and the club needed an answer before the end of October so they could plan for the future."
Young is due to enter free agency Sunday, November 1, with the PNG Chiefs heavily tipped to sign him from 2028.