The 36-year-old striker departs Old Trafford for a second time after his initial contract was not renewed during the off-season as a result of the serious knee injury he suffered in April 2017.
Ibrahimovic re-signed for United four months later after making a remarkable recovery, but he has only gone on to make two starts and five substitute appearances in all competitions since returning from injury.
Red Devils boss Jose Mourinho recently admitted he would not stand in the Swede's way if he chose to seek more game time elsewhere, and his spell at the Theatre of Dreams has now come to an end.
"Manchester United confirms that it has agreed to the termination of Zlatan Ibrahimovic's contract with immediate effect," read a statement from the club.
"Everyone at the club would like to thank Zlatan for his contribution to the team since his arrival and wishes him well for the future."
Ibrahimovic bid United farewell in a post on Instagram, which read: "Great things also come to an end and it is time to move on after two fantastic seasons with Manchester United.
"Thank you to the club, the fans, the team, the coach, the staff and everybody who shared with me this part of my history. #foreverred."