The 27-year-old off-spinner recently revealed details of the tragic circumstances his family have experienced this year and Yorkshire, along with the PCA, will continue to offer support to Azeem, Faryal and their family.
Pakistan-born Rafiq first played for Yorkshire as a teenager in 2008, and stood in as captain in 2012, but was released at the end of the 2014 season. He re-joined the Club in 2016 after two years away from the game caused by a loss of form and confidence.
Rafiq, who recently claimed his 100th career T20 wicket in a Vitality Blast win over Leicestershire Foxes, said: “I was informed on Thursday that Yorkshire have decided not to renew my current contract which ends this season. I understand that it is part and parcel of professional sport and tough decisions have to be made. I am of course very disappointed by this decision.
"Whilst the timing of this is far from ideal it gives me the perfect opportunity for a completely fresh challenge with a new county where I can further my cricket and fulfil my potential and ambitions."
Director of Cricket Martyn Moxon added: “Obviously this is part of our rebuilding process. We’re having a really close look at areas in which we need to strengthen the squad and crucially within the budget we’ve got. Unfortunately, with that in mind we’re not able to offer Azeem a contract extension.
“We wish him well for the future and thank him for his contribution to the club over the last three years.”