The Portuguese international's current deal with Barcelona only expires in June 2010, but it is understood that the club have given his agent the green light to start negotiations with other teams.
Deco has been one of the most avid critics of Barça's current situation, having claimed back in December that he would seek a new challenge in case of another trophyless season.
Barcelona fans expressed their unhappiness with Deco by whistling the 30-year-old whenever he had ball in last weekend's game against Mallorca, which only came to confirm his unsatisfactory situation at the Catalan club.
"I would never stay like this. I want to be where I am wanted and when things end like this, it is better to go," Deco said. "I thank the club for being honest with me."
Deco has ensured that his new challenge will come from another country as he does not want to stay in Spain, after serving Barcelona for four years.
"I will go to England or Italy, I can assure you. In Spain, no, because the only club that can match Barça's level are Real Madrid and I would never go there."
The Right Stuff
And while the Brazilian-born player thinks that it won't be hard for Barça to find a replacement for him, he stressed that his performances this season have not been what many have suggested.
"If I go, whoever comes will do it right. Gerrard, Cesc, Lampard... it won't be difficult for Barça to find someone to replace me. I hope that I have a good Euro tournament - that's the only thing I have left this season.
"It is hard to play a season at the highest level with injuries, but I believe I played well in about 80 per cent of the games."
On Barcelona's incoming boss, Josep Guardiola, Deco said: "He is young and very ambitious, he will do a good job. It will be a great team."
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Player Ratings: Barcelona 2-3 Real Mallorca