According to insiders, Thorpe's lucrative million-dollar television contract was terminated as he had lost interest in his once-promising media career.
Media sources claimed Thorpe had in recent times become a reluctant participant in the Foxtel relationship as he focuses increasingly on his university study and the years lost to schooling while in the pool.
"Foxtel can confirm its marketing agreement with Ian Thorpe has concluded," a spokesman said.
"We are in discussions with Ian and his management about future projects, including some related to Foxtel's 2010 Commonwealth Games, the 2010 Winter Olympics and the London Olympics in 2012. Those associations will be on a project-by-project basis," News.com.au quoted the spokesman, as saying.
Thorpe was signed to a four-year contract at Foxtel - said to have been worth a million dollars in 2005 after being brazenly poached from Channel 7.
At the height of his fame, Thorpe talked openly of his plans to launch his international television career and opened up about his ambitions to produce a television drama.