Leeds midfielder David Prutton has had his contract at Elland Road terminated by mutual consent.
The 29-year-old will now complete a permanent move to Colchester after joining the League One side on loan last week. Prutton did not have permission to play for his new club against Leeds on Saturday.
Leeds manager Simon Grayson said: "Prutts has found opportunities limited and hopefully he'll now be able to play regular football. He's a great character and it goes without saying that everyone connected with the club wishes Prutts all the very best for the future."
Prutton, whose previous clubs include Nottingham Forest and Southampton, joined Leeds in the summer of 2007 when Dennis Wise was manager and soon became a cult figure among fans.
He made a total of 76 appearances, scoring four goals but he has found first-team football hard to come by under current manager Grayson.
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