Ljungberg made 25 starts for the Hammers after his £3million move from Arsenal last summer.

A statement on West Ham's website said Ljungberg is now deciding whether to retire or follow up interest from clubs in Asia and the United States.

The 31-year-old Swedish midfielder failed to make an impact at West Ham after an impressive nine-year spell with Arsenal, where he helped the Gunners win two Premier League titles and three FA Cups.

Ljungberg explained: "I gave my all at West Ham and enjoyed my time there but the decision is the best for the both of us. Now I will take my time to consider my football future."

Hammers chief executive Scott Duxbury said: "We respect Freddie Ljungberg's position and are pleased we could reach agreement and wish him all the best in the future.

"This deal is mutually acceptable to both parties."