Dahlhaus has spent eight seasons at the Dogs, and played 154 games for the club during his time at Whitten Oval.
It is widely believed Dahlhaus will join Geelong during the free agency period.
The statement can be read in full below.
The Club had been in discussions with Dahlhaus and his management throughout the season about a new multi-year contract extension beyond 2018.
Notwithstanding this, Dahlhaus is an unrestricted free agent, allowing him the freedom to move to another club of his choice.
While the Club is obviously disappointed an agreement could not be reached, the Club maintains an obligation to be balanced in its approach across its entire playing group when making its list management decisions.
The Club wishes to thank Luke for his eight years of wonderful service, including 154 games and his contribution to the Club’s 2016 Premiership. We wish Luke well for the remainder of his career.