The 20-year-old midfielder, who had been on the Gunners' books since a young age, was presented with the offer of a new three-year deal but he has made the decision to reject the offer and will now officially leave the Londoners when his deal expires on June 30.
Arsenal, of course, had plans to oversee the winger's future, as he was showing bags of potential after an encouraging season at Under-23s level, but he has made the decision to leave the club.
This season, Tormey had racked up 15 appearances in the Premier League 2, scoring four goals, as well as playing for the Gunners in the EFL Trophy against Northampton Town, Cambridge United and Peterborough United, showcasing just what he may be able to bring to the fore for the Gunners' first-team in the coming months.
But Tormey's hopes of forcing his way into Mikel Arteta's first-team plans following the decision that clubs could return to training last month were quashed as he had suffered an ACL injury, putting a stop to any first-team plans he may have had.
Announcing the news of his exit from the Emirates Stadium, Tormey wrote on Twitter: "I appreciate the offer of a new 3 year contract but I feel now is the time for me to move on.
"I would like to thank all the people at the club who have helped me become the player I am today and wish them all the best for the future.
"I am looking forward to a new challenge."
Whilst Tormey was showing promising signs for the Under-23s on the left flank, he had the likes of Bukayo Saka and Gabriel Martinelli ahead of him in the pecking order, meaning he may have used that as a motivation to explore a new challenge elsewhere in an attempt to secure regular first-team football.
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