The comments had Twitter users in a frenzy, but an official familiar with the group said the band had more concerts scheduled later this year and Grohl's comments had been misinterpreted.
They said on condition of anonymity that the band has four US shows in September and that after that it will take some time off "after touring the world for a year".
The frontman also took time to remember his former Nirvana bandmates, Krist Novoselic and the late Kurt Cobain, by dedicating his Three Days song to them.
He added, "I'd like to dedicate this song to a couple of people who couldn't be here tonight. This one's for Krist and this one's for Kurt.''
Grohl then remembered when Nirvana played the festival 20 years earlier and how the crowd sang happy birthday to his mother - and brought her out onstage to relive the moment.
"In 1992 when Nirvana played here, the last show we ever played in England, you sang happy birthday to my mom. Here's your chance.''
Meanwhile, Kasabian closed Leeds festival with renditions of the Beatles' She Loves You and Fatboy Slim's Praise You, as well as paying tribute to late astronaut Neil Armstrong, who died on Saturday.
- WENN