Bobby Hill will reportedly leave Collingwood at the season's end.

AFL.com.au's Cal Twomey reported on Thursday that the Pies and Hill's management have reached an agreement which will see the premiership hero and fan favourite depart as a delisted free agent at the end of the current season.

Hill has four year's remaining on his current contract, but hasn't featured at AFL level since late last season, and has been largely absent from Collingwood as he deals with personal issues.

The deal for his departure has reportedly been reached, and official plans will be finalised in the next few days.

Hill joined the Magpies from GWS ahead of the 2023 season, winning the Norm Smith medal for his four-goal performance in the club's grand final triumph the same year.

The 26-year-old signed a mammoth extension mid-way through 2025, understood to be worth around $750,000 a year.

The West Australian and Indigenous All Star is a mark of the year winner, Collingwood leading goal-kicker (2023), and mark of the year winner through his time at the club as he quickly rose into a leading small forward of the competition.

He's played 61 senior games in black and white, and made a few VFL appearances this year.

Collingwood coach Craig McRae has repeatedly told media Hill was some distance away from returning to AFL football as the club put his wellbeing first.

McRae became emotional speaking to media last week about Hill.

"He's a Premiership player and Norm Smith medallist, and he'll forever be welcome in our four walls - whatever that looks like and means for the future," McRae said.

"There's the playing part; The high performance of what he's capable of doing for our team and for our supporter base. And then there's the personal part: He's a father.... A young man with three kids. You want the best for all our players."