Kimi Raikkonen, who spent 13 years winning Formula One races and taking home the championship title once in 2007, said in a statement on Monday that he would not race again this season.
The three-time driver, who is 37, was expected to leave Ferrari at the end of the season but said after winning the Monaco Grand Prix on Sunday that he was in negotiations with a new team.
“After extensive and thorough deliberations, I have decided to retire from Formula One at the end of the season,” he said in the statement. “It is with a heavy heart that I make this announcement, not least due to the fact that this will be my last race at home.”
The statement added that he would “continue to be available for future challenges.”
The team said in a statement that he had decided to leave on Sunday but that it was “difficult to understand this surprise” because talks were still going on.
A spokesman for Raikkonen told the BBC he would compete in the Austrian Grand Prix this weekend but would not race again before the end of the season.
The Finn said that it was “important for me to reach this conclusion as quickly as possible so that I can focus on my other activities.” He was competing in the World Endurance Championship, which has its final race in Azerbaijan on Sunday.