The Spaniard announced on Wednesday that he is leaving the LIV Tour.
"The conditions are unacceptable," the 31-year-old's lawyer said in a statement.
Rahm and LIV are now reportedly working to reach an agreement to part ways.
The two-time major winner became perhaps LIV Tour's biggest star when it became clear at the end of 2023 that he was leaving the PGA Tour.
According to Forbes, his contract was worth 3.5 billion kronor (about $333 million).
In September, LIV filed for bankruptcy protection in the US after Saudi Arabia's sovereign wealth fund, PIF, cut off funding.
It recently emerged that the credit arm of finance company BC Partners is investing $300 million, equivalent to three billion kronor (about $286 million), in the LIV Tour.
