Stade Francais and Paul O'Connell have both confirmed that the former Ireland captain will leave the Top 14 side at the end of the season.
"I have decided not to stay beyond my contract year with the club and do not plan to join another club next season either," said O'Connell is a statement released by the club.
"I had a great adventure at the Stade Français Paris. I am grateful to the club for the opportunity they gave me to live and work in Paris. I was delighted to be able to work alongside Heyneke Meyer, the staff and all the club's players.
"Finally, I am looking forward to the end of the season and I hope to be able to help the club during the eventual finals of the Top 14."
Stade Francais said that the 39-year-old will always be considered a member of the club's family.
O'Connell joined the club's coaching staff at the start of the season on a one-year deal which runs out at the end of June.
Stade are currently eighth in the Top 14, one point outside the playoff places.
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