Manager Frederic Antonetti confirms that the promising French midfielder will depart the Ligue 1 club at the end of the season, despite his contract running until 2015
The promising defensive midfielder, who has been heavily linked with both clubs in the past, is now set to be the subject of an intense bidding war come the the end of the campaign.
"Yann M'Vila won't be a Stade Rennais player next season," Antonetti revealed to Radio Monte Carlo.
The 21-year-old, who has three years to run on his contract, has been capped 18 times by France, becoming national coach Laurent Blanc's most used player during his tenure in charge of Les Bleus.
Rennes, currently fifth in Ligue 1, play their last match of the season on May 20 before France kick off their Euro 2012 campaign against England on June 11.
M'Vila had previously stated in November that he felt ready to leave the club but wanted to wait until after the summer tournament in Poland and Ukraine to take the next step in his career.
His Rennes team-mate, Kader Mangane, also told Goal.com in that month that the youngster "will join Real Madrid or Arsenal next summer".
The midfielder has made 33 appearances in all competitions for his club so far this term, scoring once in the Europa League.