The Samoan international informed the Panthers on Monday that he had opted against extending his stay at the club.
Canterbury have been heavily linked with Crichton, who has been a key component in a side which has won two premierships and reached another grand final in the last three seasons.
Penrith say they first offered Crichton a new deal in May of last year, only to put talks on hold due to the impasse in salary cap and CBA negotiations.
"It was the hardest decision to make, but now my full focus is on the 2023 season and finishing my time at Panthers as strong as I can," Crichton said in a statement.
"It's going to be tough to leave my teammates, but we will have our chance to make more memories this year. I know my friendships at Panthers won't finish here but will last forever."
A change in club may also herald a change of position for Crichton, who was named Dally M centre of the year in 2022.
Crichton has been touted as a potential NRL fullback but has been forced to play at centre due to the form of Dylan Edwards.
"Although Panthers is disappointed by the outcome, the club respects Stephen's decision, and understands the situation is exacerbated by salary cap pressure based on the club's recent success," Panthers Rugby League CEO Matt Cameron said.
"The club thanks Stephen for his efforts and is looking forward to seeing him represent the Panthers for the remainder of the 2023 NRL season."
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