Perth Wildcats' NBL title hopes have been dealt a blow with guard Hugh Greenwood walking out on the club to have a crack at breaking into the AFL ranks.

Greenwood informed the club on Thursday and Wildcats managing director Nick Marvin said he was very disappointed to receive the news.

Leaving: Perth guard Hugh Greenwood during his US college stint with the University of New Mexico.

"Unfortunately Hugh Greenwood's decision not to honour his contract poses a significant challenge for us. Whilst he leaves with our best wishes, it does require us to revise our recruiting strategy immediately," he said.

"We made numerous decisions based on his commitment to us, so we are disappointed to lose him.

"However, the Wildcats family has always dealt well with adversity and this occasion will be no different."

Greenwood was in the first month of a three-year contract with the Wildcats.