“AC Milan and Sulley Muntari would like to announce they have reached agreement to dissolve the player’s contract with the club as of today,” said a club statement.
Ghanaian international Muntari joined the Rossoneri on a permanent basis in 2012 following a loan spell while he was a registered player with city rivals Inter Milan.
However the 30-year-old midfielder fell out of favour at the fallen Serie A giants last season, especially when Filippo Inzaghi replaced Clarence Seedorf as coach of the seven-time European champions.
Muntari made only 16 league appearances, scoring twice, as the Rossoneri headed for a mid-table finish that ruled them out of Europe next season.
Milan boosted their midfield earlier this week with the capture of Italy international Andrea Bertolacci from Roma and are looking to rebuild their squad under newly-appointed coach Sinisa Mihajlovic.
Milan paid tribute to the battling midfielder, adding: “AC Milan would like to thank Muntari for the commitment and professional attitude shown during his time playing in the Milan shirt and wish him all the very best for the future.”