Bayern Munich are set to release international winger Philip Lahm as talks over his contract extension have broken down. "Talks between Bayern and Philipp Lahm over the extension of his contract which expires on June 30, 2009 have been inconclusive. As a result, Bayern have withdrawn the offer of a contract extension," Bayern Munich Chairman Karl-Heinz Rummenigge was quoted saying on the club's website. Lahm's contract is set to expire in June 2009 and the Bavarian giants were willing to keep him until 2012 but they couldn't find an agreement over the contract's amount. The Spanish press claimed that the 24-year old player agreed terms with Barcelona and that a move could be sealed this summer. Meanwhile Bayern Munich have finalized a deal with Hanover over the transfer of Jan Schlaudraff. “Unfortunately, I'm absolutely certain we've not seen Jan's true quality in his time here. He never really got his chance because the competition was so fierce. After all, he's had Luca Toni, Miroslav Klose and Lukas Podolski ahead of him," added Rummenigge.