AEK Athens have decided to cancel the contract of Eidur Gudjohnsen with immediate effect.
The Greek outfit took the decision because of the club's ongoing financial problems that are threatening to see the club relegated.
The Icelandic striker, who had 18 months remaining on his deal with AEK, has reportedly accepted a payment of around £150,000.
"AEK announce the mutual termination of Eidur Gudjohnsen's contract. We wish him all the best in his future career," the club said in a brief statement.
Gudjohnsen has previously played for the likes of Chelsea, Fulham and Barcelona.
