Relationship with close guy friend - mixed signals

This guy who I'm really close to (so close that people thing we're in a relationship). tells me that he considers his relationship to be a casual one where is girlfriend is more of a close friend than a girlfriend. He also says that for this year (we're both entering our final year of college) that he has made it clear that he needs time away from her and she can move on if she wishes. What does it mean for me especially since he told me this directly? Also this relationship he is currently in, only one of our friends knows about it. The rest of the guys thinks that he and I are together.

He maybe telling you because you are his friend. We tend to tell our friends things like this. Just remember you and he are not together even if every one else thinks you two are. He is in a relationship with this other person. That is who he chose to have a relationship with. If he wants to break up with her then he needs to do that. Allowing other people to believe that he is in a relationship with one person when in reality he is in a relationship with another is not good.

You are reading too much into this. You have feelings that he may not have, or you wouldn't be hoping that conversation meant more than a friend telling another friend what is going on in their life. Find someone that can fulfill the need you have for a relationship. You could destroy your friendship.