Real Madrid also gave their backing to Ronaldo, releasing a statement saying the club had "full confidence in our player Cristiano Ronaldo, who we understand has acted in accordance with the legality regarding compliance with his tax obligations".
The Portugal star "feels great indignation" at all the speculation about his tax affairs and a sense of "injustice" at the allegations - which he contests - and has made a decision to leave Spain, reports The Guardian citing a source.
The shocking news was backed up hours later on the website of newspaper Marca, which is viewed as Madrid's mouthpiece.
Ronaldo has already had talks with Real president Florentino Perez and director general Jose Angel Sanchez about wanting to leave Spain.
However, Ronaldo has been accused by Spanish prosecutors of "defrauding the authorities of millions of euros in tax", and this hasn't gone down well.
The storm has gone on while Portugal are preparing for the Confederations Cup in Russian Federation - their first game coming against Mexico on Sunday - but Ronaldo's worldwide colleague Andre Silva insists his captain is concentrating on the task at hand. According to the Independent, Paris Saint-Germain has long coveted the world's highest-paid athlete and "held a number of secret meetings with him" about a transfer during the 2015-16 season.
It remains to be seen how many Chinese clubs will be able to afford his transfer fee now.
Last November, he agreed to extend his contract until 2021.
Ronaldo led Real Madrid to their 12th European Cup earlier this month after scoring two goals in a 4-1 victory over Juventus in the Champions League final, becoming the tournament's top scorer. They were recently won the uefa champions league.