Inter Milan technical director Marco Branca has confirmed Diego Forlan's contract is set to be cancelled.

AssociatedDiego Forlan is close to leaving Inter Milan after only one season with the club

• Forlan excited by Internacional link

Forlan, 33, signed for Inter last summer from Atletico Madrid but struggled with injuries and scored only twice in his 22 appearances.

His contract was due to expire in June 2013, but it appears the Uruguay international will be allowed to depart on a free transfer.

"We are close to agreeing to cancel his contract," Branca told La Gazzetta dello Sport.

Forlan has expressed an interest in returning to South America, with Brazilian sides Internacional and Corinthians thought to be leading the race for his services.