The 37-year-old had returned to train with the club but will not be part of the squad as they prepare for life in the Championship
Aston Villa will not offer Stiliyan Petrov a playing contract with the club ahead of next season's Championship campaign.
The 37-year-old recently returned to train with Villa during their pre-season training camp in Austria, but will not be part of their squad come August.
Petrov retired from football in 2013 after being diagnosed with an acute form of leukaemia in 2012.
"Stiliyan is an inspiration to all of us. I have spoken to him and explained my thoughts and offered him the chance to remain at the club," said manager Roberto di Matteo.
"Stiliyan is going to discuss this with his family before coming back to us."
The Bulgarian midfielder was offered an unspecified role at the club. Petrov made 219 appearances for Villa's senior team after joining from Celtic in 2006.