Should I cut ties with guy friend who rejected me?

jenni__
I have been friends with my closest guy friend for 9 years. We met freshman year of college, but after that year and for the 7 years after, we were long-distance friends (I transferred colleges to one out of state). I've had feelings for a long time but since he rejected me awhile ago (2009..), I really held back so as to respect his feelings for me.

Now, since last year we're in the same city again after 7 years. It's been fun, but I still have these lingering feelings for him. I hold back still but he always wants to hang out one-on-one and plans things for us like dinner & a movie, going to yoga together, exploring the city etc.
Last month he went on a business trip abroad and met this girl (an American living in the country) - he didn't mention it at all but I saw some stuff on social media that made me realize he probably liked her. Then, last week I see his sister post a picture of him and this girl online - he had invited this girl on a family trip/cruise to the Caribbean! I was heartbroken and realized I am not over him. It also hurts becuase she just graduated college and me and my guy friend are both 27 so it feels like this girl is so young and she doesn't have the career, stability or anything that both of us have. Also he never mentioned her to me which was so weird, especially since we talked all about his trip and the upcoming cruise.

I can't go forward just being his friend, it hurts too much. Do I tell him I need space, or that we can't see each other anymore? Is that too mean? I don't want him to think I'm trying to punish him because this would be more about me than him and trying to preserve my feelings. I just really need time to get over this, and never have had the chance to do that. So, cut contact or go about this another way?
Should I cut ties with guy friend who rejected me?
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