Hodge has had a huge impact at Grace Road

The Australian led the team to victory in the Twenty20 Cup final last month, their first trophy since 1998.

Hodge, who has been linked with a move to Lancashire, also holds the record for the highest first-class score by a Leicestershire batsman of 302 not out.

"Naturally we are disappointed," said Director of Cricket James Whitaker.

The two-year contract, according to the club, reflected Hodge's "standing in the game".

The 29-year-old, who also helped Victoria win Australia's Pura Cup last winter, has scored 1,548 Championship runs during the current season at an average of almost 62.

He has been a regular member of the Australia A team, but has yet to play Test or one-day international cricket.

"Over the last 18 months Brad has developed arguably into one of the leading batsmen in the world," Whitaker told the club's official website.

"On behalf of all at Leicestershire County Cricket Club I would like to thank Brad for his enormous contribution over the last two seasons, on and off the field."

Hodge missed Leicestershire's final game of the season against Somerset because of a groin injury.