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The pacer, who has only ever represented one team -- Mumbai Indians in the IPL and grabbed 170 scalps in 122 matches -- said he's looking forward to making new memories with a new franchise.
The 38-year-old took 546 international wickets, including a record 107 in T20Is.
The 37-year-old Malinga, who is IPL's highest wicket-taker with 170 scalps to his credit, has pulled out citing personal reasons in a major blow to the defending champions.
Mumbai Indians said that Malinga wants to be with his family back home in Sri Lanka and thus won't play this year for the four-time champions.
"It is understood Malinga's father has been ill and may require surgery in the coming weeks. The fast bowler wants to be by his side and will be training in Colombo," the report said.
Malinga, who became the first bowler to capture four wickets in four successive balls in both ODIs and T20Is, finished with figures of 4-1-6-5, as Sri Lanka notched up a consolation 37-run win in the third and final T20I in Pallekele on Friday.
The veteran Lankan pacer retired from ODIs after the first match against Bangladesh.
Malinga said he hoped to play T20 cricket and had his sights on the 2020 World Cup in Australia.
Malinga also believes that this Indian team can repeat the feat that the team under MS Dhoni achieved at the 2011 World Cup.
Malinga derailed England's chase after Angelo Mathews' unbeaten 85 had powered the 1996 champions to what appeared a below-par 232/9.