"They have made an offer which Lucas has declined - he is not going to be signing a new contract at Blackburn," Neill's agent Peter Harrison told Sky Sports News.
"He has enjoyed his time there, he loves the club and the fans, he just feels it is time for a change.
"If he has to stay he will have to stay, but this is not about money at all.
"There will probably be more talks before the end of August, but it doesn't look as if he will stay but as always he will continue to do his best for Blackburn."