Diouf departs Blackburn Rovers
"Dioufy has left the club. I think we reached a mutual consent termination of his contract last night," manager Steve Kean told the club website.
"He will be moving on to pastures new and we wish him all the best."
Diouf has been involved in several on and off the field disputes during his career and in July was suspended for five years from all soccer-related activity in his home country after saying "the whole system of African football is corrupt".
The 30-year-old started his career in France with Sochaux, Stade Rennes and Racing Lens. He ended last season with a loan spell at Scottish champions Rangers.
Kean had already said before the end of the transfer window on Wednesday that Diouf was not in his first-team plans while the Senegalese had made clear he wanted to leave Blackburn.