Sky Sports reported on Tuesday afternoon that the 23-year-old has told the Toffees that he will not sign a new contract with the club.
The 23-year-old's move is set to spark a summer transfer scramble, according to reports in the British media, which say Chelsea and Manchester United are readying bids for the Belgian worldwide.
The Belgian had been involved in contract negotiations with the club for some time, and last month, his agent, Mino Raiola, said that the new deal between his client and the club is 99.9% done.
Chelsea and Manchester United want to sign the Belgian and are plotting a summer swoop for the unsettled Lukaku.
But now multiple reliable media sources are reporting that Lukaku has had a change of heart and wants Champions League football next season.
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The Everton striker is joint top scorer in the English Premier League this season with 19 goals.
His value has soared each year he has been at Goodison Park and, despite his decision, Everton will still be able to demand a huge fee should he request a transfer this summer.
He still has three years to run on his current deal, yet Everton can now expect some of Europe's top dogs to come calling now Lukaku has made his intentions clear.
But Everton are unlikely to secure a Champions League spot and Lukaku believes he has given the club enough time to become challengers after nearly four years at the club, including the loan from Chelsea in 2013.
If Lukaku leaves, it'll be a big blow to Ronald Koeman's side.