The Bundesliga club said on Wednesday the player's contract that ran until the end of the season had been dissolved.
Camoranesi joined last summer from Juventus but failed to make any impact and Stuttgart are struggling in 17th place just three points above bottom side Borussia Moenchengladbach.
"That is football," said Camoranesi who helped Italy win the World Cup in 2006. "Sometimes things happen which you cannot predict. Unfortunately it did not work out on a sporting level but I felt here very much at home," he said.
The Argentine-born 34-year-old fetured in only seven league games this season and was sent off once.
‘After Manchester City’s recent form, maybe they’re the underdogs against Manchester United!’ Former Red Devils defender on this weekend’s derby
‘Arteta, Alonso, Emery, me… none of us were physical players – we needed the understanding of the game. That probably helped us move into management’: Premier League boss reveals reasons for natural career progression
