Australian midfielder Neil Kilkenny looks set to leave Leeds United after failing to take up the offer of a new contract.

The club made the 25-year-old the offer of a new contract to stay on at Elland Road, but neither Kilkenny nor his agent have confirmed their acceptance, and manager Simon Grayson says the time has come to move on.

"This is another issue we wanted resolving as we have to prepare for next season," said the boss. "I'm keen to move on so we can plan accordingly in terms of what we have and what we need."

Kilkenny, who was signed by Dennis Wise in January 2008 and has made 144 appearances for the club, is currently away in Australia on international duty.