Citroen team principal Yves Matton acknowledged the speculation surrounding Loeb's departure following the FIA prize giving on Friday, where Loeb collected his third place WTCC trophy along with his team-mates - 2015 champion Jose Maria Lopez and runner-up Yvan Muller.
"Intense media scrutiny and the search for sensational stories can sometimes overstate and distort reactions," said Matton.
"Seb wasn't 'fired', as has been suggested in some quarters.
"He is still part of the PSA Peugeot Citroen group and his new challenge with Peugeot Sport is not some sort of plan B, in view of his exceptional career.
"He chose to commit himself fully to the Dakar adventure and we'll be following his progress with great interest."
Matton added that Loeb's departure was clearly a significant landmark in Citroen's motorsport history.
"There's no denying that this undoubtedly marks the end of a great chapter in the history of Citroen Racing," he said.
"Our sense of nostalgia will shortly give way to recollection of some great memories.
"On a personal level, I'm proud and happy to have worked alongside Seb at various stages of his career with Citroen."
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