Speaking to the Times newspaper this morning, former England star Hoggard said he was 'shocked and bitterly disappointed' to have been axed by his home county after 15 seasons at Headingley.
However, the club have hit back - saying Hoggard originally agreed to break the news 'at a mutually agreeable time, thereby assisting his transition to a new county in the most positive manner possible'.
In his interview with the Times, the 32-year-old claims to have been in talks about taking on the captaincy of the county next season before he was told last Thursday that he would not be offered a new contract.
But Yorkshire have rejected this assertion, saying the position had been discussed but not formally offered to Hoggard and revealing that he turned down a contract with the club earlier in the season because he wanted more money.
'An extremely competitive two-year contract, with the option of a third year based on performance, was offered to Matthew Hoggard at the beginning of the season; a deal that would have retained his position as one of the highest earners at the county,' the club claimed.
'Matthew turned that contract offer down as he wanted a higher salary and a longer contract.'
The club explained that after reviewing the playing budget for 2010 onwards, it was decided that Hoggard's demands could not be met and that he would not be accommodated in the squad for the following season.
Explaining that the situation had changed since Hoggard's first contract offer because of 'the tightening of work permit regulations for overseas players and the demand for young England-qualified talent', Yorkshire informed the 67-cap international he would be released.
'At the meeting last Thursday, Matthew Hoggard was informed that the board had made the decision not to offer him a new contract,' the statement continued.
'This decision had been made in light of a number of factors - the current economic climate, the player’s contractual requirements and a detailed analysis of the makeup of the professional squad for the 2010 season.'
Despite the acrimonious nature of the split, Yorkshire director of cricket Martyn Moxon said: 'I would like to thank Hoggy for his contribution to the team during my time here at Yorkshire.
'He always gave 100 per cent and his presence in the team has dug us out of a hole on more than one occasion.
'I know he will continue to give his all and I wish him every success in the future.'
Chief executive Stewart Regan added: 'Matthew Hoggard's bowling statistics speak for themselves and he has been one of the country's top bowlers during his time at the club.
'On behalf of the board of directors I would like to thank him for his outstanding contribution to the game of cricket for both Yorkshire and England and wish him and his family all the very best going forward.'
Hoggard's destination for 2010 remains unclear although a number of counties are believed to be in talks to sign him up.
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