The current deal for 28-year-old Alaba, who has been at Bayern since 2008, runs out in 2021. Contract talks have dragged on for months, reportedly over the player’s annual salary.
“We submitted to David and his advisor some time ago what we think was a very good offer,” Hainer told broadcaster BR late on Sunday.
“The answer was that the offer was still unsatisfactory and we should think about it again. We then decided to take the offer completely off the table.”
Alaba, who has won two Champions League trophies with the club as well as nine league titles and six German Cups, said he heard about Bayern’s decision from the media.
“I heard it like everyone else on the news,” Alaba told a press conference ahead of their game at Salzburg in the Champions League on Tuesday.
Alaba was upset that the club never shot down the reported salary figures mentioned in German media, saying he had wished Bayern had done it so that his image with fans was not damaged.
“I can completely understand the fans. I wish internal stuff would stay internal. The numbers out there do not correspond to reality and I am a bit disappointed and sad that the club never officially came out to say they are wrong.”
Asked about a possible move to the English Premier League, Alaba said: “I have not made any thoughts about my future because Bayern was always the first point of contact. I had no contact with other clubs for that reason.”