It was announced earlier in the week that Inter had made the decision to strip him of the armband and instead appoint Samir Handanovic as club captain.
That transfer did not happen as Inter rejected Arsenal's loan approach, but Nara's suggestion "personal issues" were behind the forward's desire to leave prompted the club to name Samir Handanovic as their new club captain.
The decision to scrap Icardi of the captaincy comes only days after his wife and agent Wanda Nara had caused irritation by complaining that her husband was not being given enough support by his teammates.
The Chinese-owned club crashed out of the Champions League and travel to Rapid Vienna for their Europe League round of 32, first-leg game on Thursday.More news: Oil Holds Gain as Saudi, Venezuela Supply Cuts Eclipse U.S. Boom
More news: Racing to resume tomorrow
More news: At least 41 killed in Iran bombing on Revolutionary Guard personnel bus
"It was a hard decision but it was supported by everyone at the club and made for the good of Inter as well as the team".
The Slovenia global, 34, joined Inter from Udinese in 2012 while Icardi arrived from Sampdoria in 2013, taking over as captain from Andrea Ranocchia in 2015.
Having scored three times in his last ten appearances for the club, his manager Luciano Spaletti suggested at the weekend that his contract talks are having an impact on his performances. He is quoted by Football Italia as saying: "I have not created any problems for Icardi".
Icardi, 25, has spent his entire senior career in Italy and joined Inter from Sampdoria as a 20-year-old, and has a contract with the club that does not expire until 2021.
"There are some very important clubs interested in signing him".