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Arsenal manager Jonas Eidevall says it was a "unified club decision" to let striker Vivianne Miedema's contract expire at the end of the season.
The Gunners made the decision not to renew the contract of Miedema, who has scored 125 goals and provided 50 assists in 172 appearances.
Eidevall defended the decision, which has been met with a backlash including former England and Arsenal striker Ellen White branding it "shocking".
"We obviously took a lot of care in that decision and we had to weigh a lot of different factors in that decision and what’s best for the club," he said at a news conference.
Eidevall said he "understands why decisions like this leave lots of raw emotions".
He added that it was made in the best interests of the club.
"My message [to the fans] would be that, when we are working, when we are taking decisions like this, it's to build Arsenal as strong as possible for the future.
"We want nothing more than to be as successful as possible on the pitch and that's the direction we want to go as a club."
Miedema could make her final appearance for Arsenal if she plays in their last match of the Women's Super League season at home to Brighton on Saturday.
Eidevall said Miedema has been "very professional" since receiving the news and has been "training very well" to prepare for the game.