The Dutch midfielder has featured just five times in the league for Sinisa Mihajlovic's team and has been released amid talk of a move to LA Galaxy
The midfielder has made just five Serie A appearances this term, despite having been a first-team regular under Filippo Inzaghi last season.
The Netherlands international has been in talks with the MLS side in recent weeks and the Italian club have agreed to terminate his contract.
"AC Milan announces that Nigel De Jong’s contract with the club has been mutually terminated," read a statement on the club's website.
"AC Milan would like thank the Dutchman for his determination, commitment and professionalism with which he has played for the club during his days with the red and black colours.
"We wish him all the success possible and all the very best for the next stage of his career."
The 31-year-old joined Milan from Manchester City in 2012 and was a key player for the club until the current campaign.
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