Aberdeen insist Jamie McGrath was happy to stay at Pittodrie - but they were not willing to meet his contractual demands.
The Republic of Ireland international has signed a pre-contract agreement with Hibernian.
The 28-year-old will depart the Dons in the summer and will join Hibs.
He has signed a four-year deal at Easter Road. That is exactly what Aberdeen were not prepared to dish out.
An Aberdeen spokesperson said: "Jamie McGrath will leave Aberdeen at the end of the season following the expiry of his contract.
"We were informed by fellow Premiership side Hibernian that he has signed a pre-contract agreement with the Edinburgh club.
"Both Jamie, who will miss the rest of the season through injury, and his representative made it clear he was happy at Pittodrie, and was keen to stay, but we were not prepared to offer him a four-year extension.
"Everyone at Aberdeen FC respects Jamie’s decision to look elsewhere, thanks him for his time at the club and wishes him all the best for his future career."
Hibs announced the deal earlier today with a statement of their own.
It read: "We are delighted to announce that Jamie McGrath has signed a pre-contract agreement with Hibernian FC.
"The 28-year-old has signed a four year-deal, keeping him at the Club until the summer of 2029.
"The creative midfielder has spent the 2024/25 campaign at Aberdeen, and played an integral role in their excellent start to the season. So far this season he’s contributed to 11 goals in 27 appearances.
"McGrath has been a stand-out player in the Scottish Premiership for the majority of his career, starring for St Mirren, Dundee United, and the Dons. He also impressed in the League of Ireland in the early part of his career."
David Gray said: “We’re delighted to have agreed a pre-contract with Jamie. He’s a player that we’ve admired for some time.
“He’s a creative player that will add extra quality in our midfield and in the final third.
“It’s clear to everyone that he’s been a stand-out performer in the Scottish Premiership over the last few years, and his experience and character will add to our dressing room.
“We all look forward to working with Jamie in the summer.”
Malky Mackay added: “We have been working behind the scenes ahead of the summer transfer window, to ensure we bring the best possible players into the Football Club.
“Jamie is someone that has been performing at a high level for a number of years, and is a great example of the calibre of player we want to bring to this club.
“The character and personality of any player we bring into our squad is so important and Jamie is an exceptional person and professional.
“We look forward to welcoming The McGrath family to Leith and hope that Jamie has a long and successful career in a Hibs strip.”
