The BBC reported that Froome, Britain's most successful cyclist, would join the Israel Start-Up Nation team.
Froome first won the Tour de France in 2013, going on to dominate cycling's leading race for the three years from 2015 in the colours of Team Sky, which became Team Ineos last year.
"Chris's current contract comes to an end in December and we have taken the decision now not to renew it," said Team Ineos boss Dave Brailsford.
Froome, 35, said: "It has been a phenomenal decade with the team. We have achieved so much together and I will always treasure the memories.
"I look forward to exciting new challenges as I move into the next phase of my career but in the meantime my focus is on winning a fifth Tour de France with Team Ineos."
Froome was seriously injured when he crashed at the Criterium de Dauphine in 2019 and was forced to miss the Tour de France.
After winning the Vuelta a Espana in 2017 and the Giro d'Italia in 2018 he held all three Grand Tours but his star has since waned.
Froome's teammate Geraint Thomas emerged as the 2018 winner of the Tour de France while Ineos protege Egan Bernal claimed the 2019 title.