Oh, ffs! Just let him go for free.
Yeah, it's tempting to get him out of the club as soon as possible, but I hope we don't cave to his demands. If he's not willing to be flexible and work with us to find the best solution for him, us, and his next club, then we should let him know we'll honor the last year of his contract, but he won't be registered as a player. He'll watch all the games from home, and after a full year of not playing he'll be free to look for a new club at the age of 32.
Hopefully, these comments are just posturing from his agent though.