Khadija “Bunny” Shaw has decided to leave Manchester City this summer at the end of her contract, the Guardian understands, after extensive talks over a new deal concluded with her opting to pursue a new challenge.

The Jamaica striker, who is on course to win the Women’s Super League’s Golden Boot for a third consecutive season, was close to agreeing a new deal in March and is understood to have told City she wanted to stay, but negotiations on the finer details hit a number of stumbling blocks, including the proposed length of the extension, and the WSL leaders are preparing for life without their star player.

Shaw has scored 19 times in 21 WSL games this season to help Manchester City win a first WSL title in 10 years, and is immensely popular with their fans. City and Shaw are understood to be sad about the decision.

Sources have indicated that City were not able to match terms offered by rival teams. Chelsea, reportedly ready to pay Shaw £1m a year, will be the favourites to sign the 29-year-old, who is understood to have attracted interest from many of the world’s biggest clubs, including Barcelona and several NWSL teams. The cash-rich WSL club London City Lionesses are also keen.

Shaw is in line to face Chelsea in Sunday’s Women’s FA Cup semi-final at Stamford Bridge. The following Saturday City play their final league game, at West Ham, having been confirmed as champions on Wednesday night when Arsenal were held to a draw at Brighton.

Shaw is understood to have wanted to avoid speculation affecting City’s pursuit of trophies and conversations about the former Bordeaux player’s future have kept as private as possible.

Shaw, widely recognised as the world’s most in-form central striker, was the Professional Footballers’ Association’s women’s players’ player of the year and the WSL’s player of the season for 2023-24.