The 34-year-old was the Goan side's second highest scorer (13) after Ferran Corominas's tally of 18 and the duo had developed a formidable partnership at the club.
The Gaurs extended Corominas' contract by another season. However, Lanzarote, who had an option to extend, chose not to.
The former Real Zaragoza man took to his Instagram page to announce his decision. "In Febraury, I tell (told) the club (that) I will not continue and declined the contract I had signed for one more year.
"The reason was a personal problem with the coach and I didn't want to work with him," he revealed on his social media handle.
He added that he will continue to ply his trade in the ISL. "Next season, I will continue playing in (the) ISL and will come to Goa to visit my friends."
In the next few days, another journey comes to an end. I only have words of thanks for the moments live and very happy for the persons who I share the moments with in Goa. Their treatment had been perfect. Friends, colleagues and all the people of the club made my life easy and I have great memories and friends. I would have loved to continue in Goa as my family and me felt as one of you. In February, I tell the club I will not continue and declined the contract I had signed for one more year. The reason was a personal problem with the coach and I didn’t want to work with him. Next season, I will continue playing in ISL and will come to Goa to visit my friends. Thank you everyone for making my wife, my son and me happy in Goa. @fcgoaofficial @forcagoafoundation