Bellator MMA released its Lightweight Champion Eddie Alvarez Tuesday, making him the hottest free agent in the industry.

Alvarez is one of the best pound-for-pound fighters in the world that has never fought in the UFC, according to Fox Sports.

"We sat down with Eddie and his team a few times, and it became pretty clear early on that he just wasn't interested in fighting for Bellator in the future," said Scott Coker, Bellator's new president.

Alvarez has had legal issues with Bellator, having returned to fight for the company after being involved in a litigation with Bjorn Rebney, the fighting promotion's former boss, Bleacher Report said. He would return to win a the lightweight title in a rematch with Michael Chandler.

The decision appears to be working out for Alvarez, Bellator, and the UFC, as Alvarez has wanted to leave Bellator to fight for the UFC, fans of Bellator wanted him to leave, and the UFC has the chance to sign a top-level lightweight competitor.

Alvarez's fight with Chandler would be his last for Bellator. One rumor claimed he could be signed to fight Donald Cerrone at UFC 178, but that piece of gossip was proven false, as Cerrone will instead be fighting Bobby Green in the co-main event of the card, Fox Sports reported.

With a 25-3 record, Alvarez trains with Rashad Evans, Anthony "Rumble" Johnson, and other fighters at the Blackzilians camp in South Florida. The 30-year-old's other victories include those over Pat Curran, Shinya Aoki and Tatsuya Kawajiri.

"Myself and my team had some really good discussions with Scott, but in my heart I knew I was ready to move on and start the next chapter in my career," Alvarez said.