Jeffrey Mayer/WireImage.com

CelebNews@Usmagazine.com! - UPDATE: Rosie O'Donnell to Leave The View

After months of denials, View cohost Rosie O’Donnell announced on Wednesday that she’s leaving the ABC talk show.

“Breaking News. I've decided we couldn't come to terms with my deal on ABC. Next year I'm not going to be on The View, however I will be coming back and guest hosting. I will be doing one hour specials on autism and depression and stuff that I’m interested in," O'Donnell said.

She explained that a breakdown in contract negotiations is responsible for her departure. “They wanted me three years, I wanted one year...and it just didn't work," she said.

She told the audience: “It’s not sad because I've loved it here, and I love you guys, I'm not going away, I’m just not going to be here every day.”

Barbara Walters interjected, "You keep saying don't be sad, and we should all be upbeat...I am sad, because I induced you to come here..you will be missed very much."

O’Donnell said that she plans to remain on the show full-time until her contract expires in June.

A source close to Rosie tells Usmagazine.com, "[The staff] was told this morning in the make-up room. People are sad, but it'll all be OK."

The comedian’s stint on The View has been anything but ordinary. She has famously quarreled with Donald Trump after ridiculing his haircut, questioning his moral authority, and pointing out his past financial woes on a December broadcast. Since then the two have been engaged in a public war of the words.

As recently as Monday night, O’Donnell, 45, took her latest potshot at Trump in front of an audience of 2,000 (including teenagers) during the Matrix Awards held at NYC’s Waldorf-Astoria Grand Ballroom.

According to the New York Post, O’Donnell launched into an attack against the real estate mogul, using the f-word, and concluded her rant by grabbing her crotch and shouting, "Eat me!"

O'Donnell also said she was sad when Trump called her "disgusting" and "fat" because, "it was always my dream to give an old, bald billionaire a boner."

Since the funnywoman joined the cast, there have also been rumors of strife between O’Donnell and her more conservative cohost Elisabeth Hasselbeck, with whom she often tangles on the air.

Last month, while the two debated whether the government should have the right to listen to citizens' telephone conversations, O'Donnell cut her cohost off in the middle of the argument, saying: "Elisabeth, you are very young and you are very wrong."

A source tells Usmagazine.com that ABC was "desperate to keep [Rosie]," but in the end they couldn't agree on money.

From a business standpoint, O'Donnell has been a great addition to the show. Ratings during February sweeps were up 15% in key women demographics over the same time in 2006.

Below is a full transcript of O'Donnell's announcement and exchange with Barbara Walters, Joy Behar and Elisabeth Hasselbeck:

RO: Big news, breaking news, breaking news. Did you hear it's on CNN as breaking news?

BW: I heard. I know a little about it.

RO: Breaking news. I've decided, that we couldn't come to terms with my deal with ABC, so next year I’m not going to be on "The View," however I will be coming back and guest hosting, I will be doing one hour specials on autism and depression and stuff that I’m interested in. I'm just not going to do the every day thing because we couldn’t, you know, they wanted me three years, I wanted one year. And then they were like, ‘Okay, well, what if we do –‘ I was like – and it just didn't work. And that's showbiz, but it’s not sad because I've loved it here, and I love you guys, I'm not going away, I’m just not going to be here every day. All right? [cheers and applause]

EH: Once a week?

RO: Yeah, something like that.

BW: Okay.

RO: And now Barbara wants, go ahead Barbara.

BW: Well, you keep saying don't be sad, and we should all be upbeat and I am sad, I am sad, because I induced you to come here, I knew you were only coming for one year, I hoped that it would be more than one year. We have had, to say the least, an interesting year

RO: We certainly have.

BW: We have had an exciting, fun filled, provocative, we have all loved it, we have all gotten together, and, and you will be missed very much.

RO: Well you know -- [cheers and applause] Thank you, but I’ll still be on my blog -- you've got something here (points to Barbara’s teeth) let me get this right here. Don't smush it, and off, thank you. Look what I got from you.

BW: That's what we're going to see tonight on all the programs. I would like to make one thing perfectly clear.

RO: Go ahead.

BW: I do not participate in the negotiations for Rosie.

RO: Correct, it was ABC.

BW: It is ABC daytime. You know, I'm going to read, oh, I did this, I did that, and it brings back a lot of other things that I was accused of doing and did not do. It was between your representatives –

RO: Yeah, my agents.

BW: and ABC daytime, this is not my doing or my choice. Rosie will be with on with us until the end of June.

RO: Yes, per my contract. They're not kicking me out, don't worry. It's okay.

BW: Also, we have not – I mean, we're going to be deluged with letters, we have not thought about a replacement because we were hoping you would come back.

RO: I know, we tried.

BW: We're going to take a look. My two other children will be back. [cheers and applause]

RO: Yes, it's all right. Now will you miss me Joy?

JB: I'll tell you who's really sad. Donald Trump. [laughter]

RO: I know.

JB: He's on a ledge right now, saying, ‘How am I going to resuscitate "The Apprentice" now?’

RO: Well, you know--

BW: Wait, you know who else is very sad? She's sitting back in the green room—Kelly. Kelly is saying, ‘I got her for lunch every day.’

RO: Exactly, she's the one probably who was most trying to go, what—

EH: Well, Tim would always say that this is a good place to get everything out, you know. He knew once I came here in the morning, and get all the aggression out—

JB: You’d be nice to him?

EH: Yeah, I’d be easy going for the rest of the day, so maybe Kelly feels the same way now.

RO: It’s true.

JB: But we are going to miss you. This has been an exciting year. It’s been interesting. And you’ve took all the hits, so have you. We’ve enjoyed it.

EH: You’re such a catalyst for this talk show. It just is.

RO: I kicked it up a notch, you know, but that was, I tried to, I was at home, I never thought about coming back to daytime and Barbara asked me, and I thought, a year with Barbara Walters. Who can resist that? Honestly, you're a legend, whether you want me to say it or not. You’re a living legend. [cheers and applause] And it’s been a riot, I've had a good time.

BW: You know, it’s better to be a living legend than a dead legend.

RO: That is damn straight.

BW: But, you know, Rosie has been talking about the cruise, you know that she and Kelly are in, and this came about because they did this wonderful HBO documentary that had to be on-- that was on last year's cruise.

RO: Right, right.

BW: I went to see it, and it was so great, I was so moved and touched and Rosie was there. I said, you know, just on a whim, ‘Would you ever consider?’ and when she said ‘Yes!’ I nearly fell off the deck.

RO: I didn’t say yes, I said, ‘For you, Barbara Walters, I'd do anything.’ And that's why I've been here for a year. That’s the truth. Will you miss me Elisabeth?

EH: I think I'm kind of in denial. You know, I just feel like we've had such good conversation, and you are such – I can't say it enough--you are such a catalyst, you know, you know how to just like get it in there. And I think that because of that we've really just taken off the shackles and really just had some purely honest conversation here. So, I say we make the most of the time until you go and I'm glad that you're coming back. What do the kids say about it?

RO: Well, it was funny, Parker, they took a vote. You know, I went to the mall with Vivian, to return those sneakers when she got the wrong, remember I had the sneaker tragedy? I said, ‘This is the last pair you’re trying on.’ And she took me literally. So then she got home and she wasn’t wearing them because they hurt her feet, she was like, ‘You said it was the last pair.’ So I took her back to the mall, and now, you know, when you're on TV every day, and when you say things that are provocative, many people come over to say, 99 percent of them are nice, you know, but after the sixth or seventh person at the mall, Vivi goes, ‘Why are people talking to you?’ I said, ‘Honey, because of the job I go to in the morning, and she goes, ‘You got to get rid of that thing.’

BW: That’s why you left, when you left your show.

RO: That’s true. Yes, indeed.

EH: Are you taking the confetti with you?

RO: No, no, I feel the confetti has helped this program immensely and you should continue it next year!

EHa: You’re very concerned.

BW: And the giveaways.

RO: And the giveaways, things that must continue. All right, now let's talk about real news, because frankly that’s just this.

Afternoon Delights: Joe to Offer His Services to Britney

Related Rosie O'Donnell Posts

Hot Stuff: Mischa To Pick Up Her Imaginary Kids From Soccer Practice

Related Elisabeth Hasselbeck Posts

Rosie Versus Everyone: A Round-Up

Related Barbara Walters Posts

Morning Rush: Donald Sends Barbara Gift Via the Panty Express

Related Donald Trump Posts

Hot Stuff: Mischa To Pick Up Her Imaginary Kids From Soccer Practice