James McClean and Derry City reached a mutual agreement to terminate his contract immediately, just ten months after his return.
The 37-year-old midfielder rejoined his hometown team in January following his exit from Wrexham, but he failed to make a matchday squad after July.
Earlier this month, the experienced player seemed to be in conflict with the League of Ireland Premier Division team when he described their previous attempt to cancel his deal as "incomprehensible".
The former Republic of Ireland international described his banishment from his favored club as "one of the most difficult periods in my life, personally and professionally".
Eventually, both parties resolved their disagreement and agreed on an amicable departure.
Derry released a statement confirming that the club and James McClean reached a mutual agreement to end his contract immediately, resolving their recent dispute and allowing both sides to move forward constructively.
Philip O'Doherty, the Derry chairman, praised McClean and his nearly 20-year career at both club and international levels.
O'Doherty stated: "On behalf of everyone at Derry City, I want to thank James for his dedication to his hometown club."
O'Doherty added: "His achievements extend far beyond the Brandywell; amassing 103 senior caps for the Republic of Ireland is a remarkable milestone, and we want to formally acknowledge his immense contribution to Irish football as a whole. We wish him the very best for the future."
The club and the player stated they will make no further comments.
McClean acknowledged he wished his second period with Derry had unfolded differently, while thanking the team and supporters before leaving.
The former Premier League player stated: "I am pleased that we have reached a resolution to settle these matters."
He continued: "While my return to the Club did not work out as I had hoped, Derry City FC will always hold a special place in my heart. I want to thank the fans for their support, and I wish the squad, the management, staff, and the supporters the very best for the future. In particular, I want to wish the team the best of luck in the FAI Cup Final against Waterford FC."
McClean began his career at Institute in Northern Ireland in 2007 before joining Derry a year later, recording 20 goals and 18 assists across 108 matches in his two spells.
The midfielder, who also operates as a forward, relocated to England in 2011 to represent teams such as Sunderland, Wigan, West Brom, and Stoke.
This spell included 11 goals and nine assists across 158 Premier League appearances.
