Dimitar Berbatov will become a free agent at the end of the month.
The Bulgarian has spent the previous 18 months playing for Ligue 1 outfit AS Monaco, whom he helped to reach the quarter-finals of this season's Champions League.
However, Les Rouges et Blancs have now confirmed that with his contract due to expire shortly, the 34-year-old is to be released.
"During those 18 months at the club, Dimitar Berbatov showed his talent, but also great professionalism," deputy CEO Vadim Vasilyev told the club's official website.
"It is in the tradition of the great strikers of AS Monaco. We are proud of what he brought to the club and wish him all the best for the future."
More recently, the former Manchester United and Tottenham Hotspur centre-forward has been linked with a move to Premier League new boys Bournemouth.
Liam Apicella
