Karim Benzema felt disrespected after the contract extension offered to him by Al Ittihad, sources have told ESPN.
The French striker, 38, on Thursday decided to take himself out of the first team squad and is training on his own.
Without Benzema on Thursday, Al Ittihad played out a 2-2 draw against Al Fateh in Saudi Pro League action.
Benzema's place up front was taken by Saleh Al-Shehri, who opened the scoring in the 25th minute for Al Ittihad. With the draw, Al Ittihad sit in sixth place in the league table.
Benzema, the 2022 Ballon d'Or winner, is out of contract in the summer.
The deal on the table from the Saudi Pro League, which handle the contracts of the main players in PIF-owned clubs, would basically mean he would almost play for free, sources said.
The former Real Madrid captain, who won 25 trophies with Los Blancos, including four LaLiga, three Copa del Rey, and five Champions League titles, has been in decent form this season with eight goals in 14 games in the league.
Sources said he is considering all his options.
France winger Moussa Diaby is rumoured to be leaving the club.
France midfielder N'Golo Kanté is "very close" to agreeing terms with Fenerbahçe, according to reports.
Kanté is set to be out of contract this summer, after three seasons in the Saudi Pro League.
According to reports, negotiations between Al Ittihad and Fenerbahçe over a transfer fee are ongoing, as the Saudi side do not want to lose Kanté on a free transfer.
