Chris Taylor will take Gloucestershire to an employment tribunal after failing to agree a new contract with the county. The deal was dependent on the county's ground development plans being granted but they were rejected in January.
Taylor, a batsman and part-time offspinner at Gloucestershire for 12 years, will claim unfair dismissal. The county confirmed the matter will go to litigation.
He is the second player to leave Nevil Road because of financial uncertainty surrounding Gloucestershire's ground development. Quick-bowler Jon Lewis left for Surrey at the end of last season after failing to agree a new contract, ending 16 years at Gloucestershire.
Hamish Marshall, the former New Zealand batsman, was also offered a renegotiated deal for 2012 but his deal was not dependent on the outcome of the planning application.
Taylor, 35, made his Gloucestershire debut in 2000 and became the first player to score a hundred at Lord's in their maiden first-class match. He was also the first Gloucestershire player to score a hundred on debut. A year later he made his record first-class score, 196 against Nottinghamshire at Trent Bridge, a mark he equalled last season against Kent at Cheltenham.
He was Gloucestershire's leading run-scorer in 2011, making 1,139 runs at 40.67, as the county finished fourth in County Championship Division Two.
Taylor was part of the golden era where Gloucestershire won seven one-day trophies in five seasons between 1999 and 2004 and captained the County Championship side in 2004 and 2005. He was awarded a benefit year in 2009 and built a reputation as one of the best fielders in county cricket and is currently the England Lions' fielding coach.
"We agreed and signed a conditional contract with Chris dependent on our ground development going ahead," said Gloucestershire chief executive Tom Richardson. "Unfortunately, the planning permission we sought was turned down and therefore we have not been able to complete this agreement. We would like to thank Chris very much for his years of service and wish him all the best for the future."
The rejection of planning permission for Nevil Road cast doubt over Gloucestershire's future with a move away from Bristol a possibility. But they have been able to sign batsman Dan Housego from Middlesex.