Haaland forced to quit
The 30-year-old has admitted defeat in his battle to overcome the serious knee injury he sustained over two years ago.
The former Nottingham Forest ace had hoped to make a playing return this season and had been training hard all summer, but he has decided to call it a day.
Haaland has reached a severance package with City over the remaining two years of his contract.
"I will miss a lot of money but we have made a deal that makes sure I won't miss everything," Haaland told Norwegian daily Aftenbladet.
"This is the best thing for both parties.
"It wouldn't be much fun sitting in the fitness room for the next two years."
City confirmed that they had been in talks with Haaland over his future and they are not giving hope that he may return to full fitness."Alfie and the club have been in discussions today regarding his future.
"Alfie has been undergoing a rehabilitation programme during the summer but was not able to travel with the rest of the squad on the tour to Denmark.
"We were all hoping that Alfie would overcome his problems and recover, but that now seems unlikely. Futher discussions will take place next week and we are seeking expert medical advice from a top specialist in the USA."