Australia international Mitchell, linked with the Canterbury Bulldogs, has another season left on his current deal and was given the option of an extension by the premiers.
The Roosters on Tuesday revealed a new deal is no longer on the table after the 22-year-old refused to commit beyond 2020.
A club statement said: "The Sydney Roosters have today advised the management of Latrell Mitchell that the club's offer for 2021 and beyond has been withdrawn following discussions with Latrell today.
"Latrell has expressed that he would like to explore his options for season 2021, however he remains under contract with the Roosters for season 2020."
Mitchell said earlier in the day: "I'll do what's right for my family and I. No one has any influence on my decisions.
"I've moved out of home at age 15 to give myself a life. Now I have the responsibility of giving my kids a life I didn't have."