Sterling agrees Chelsea exit after troubled spell
Sterling had been training away from the rest of his Chelsea team-mates after failing to secure a move in the summer transfer window.
"Raheem Sterling has today departed Chelsea Football Club by mutual agreement, bringing to an end three-and-a-half seasons as our player," a Chelsea statement said.
"We thank Raheem for the contribution he made while a Chelsea player and wish him well for the next stage in his career."
The 31-year-old was regarded as one of England's leading wingers when he joined Chelsea from Manchester City in a £47 million ($64 million) deal in 2022.
But the four-time Premier League winner's move to west London quickly turned sour as he failed to replicate his City form.
Even the departure of Enzo Maresca, who had consigned Sterling to the so-called "bomb squad" of unwanted Chelsea players, was unable to resuscitate the former Liverpool star's career at Stamford Bridge.
A season-long loan spell at Arsenal last season was a disappointment, with Sterling struggling to break into Mikel Arteta's side.
Sterling had reportedly been kept apart from the rest of the Chelsea players this season, arriving and leaving at a different time to the squad and using a different building.
Liam Rosenior, hired as Maresca's successor on January 6, did not pick him in any of his five matches in charge to date.
Sterling, who was signed in Thomas Tuchel's reign as Chelsea manager, last played for the club in a competitive game in May 2024, making a total of 81 appearances.
He had 18 months remaining on a contract worth a reported £325,000 per week.
The man capped 82 times by England, had been linked with Juventus, Bayer Leverkusen and Fulham before the start of this season, but a move never materialised.
He is now able to join any club as a free agent even after Monday's transfer deadline.