Wolves have cancelled Hungary international Denes Rosa's contract by mutual consent.
The 31-year-old midfielder, who has spent the last three years at Molineux, was due to be out of contract in the summer.
"Having initially been signed by Glenn Hoddle, Denes has found himself out of the first-team picture over the last couple of seasons and things haven't really worked out for him," chief executive officer Jez Moxey told the club's official website.
"But he's always maintained a professional attitude, and we wish him well for the future."
Rosa started only seven games during his time with the club and spent part of the 2006-07 campaign on loan at Cheltenham Town.