Sendmail on Ubuntu 14.04 with Gmail hosted email

I have a droplet with a domain but with the email for hosted on Gmail. Sendmail works perfectly, except when sending email from my droplet to an address, in which case it gets dumped to a dead.letter file.

Initially I thought that sendmail knows that the server it’s running on is xyz,com and so doesn’t bother sending any messages off-server (to Gmail), but I’ve removed all references to from /etc/hosts and /etc/hostname

What can I try next?

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TonyTsang’s answer worked for me.

Try to add these two lines to /etc/mail/

define(`MAIL_HUB', `')dnl
define(`LOCAL_RELAY', `')dnl

After that run

sudo sendmailconfig