The 33-year-old, whose current deal was set to expire in June, has struggled with a foot injury in recent campaigns and has not featured for Inter this season.
A statement from Inter read: "After seven seasons, Inter and Cristian Chivu announce the mutual termination of the contract between the Romanian defender and the Nerazzurri.
"The club wishes to thank Cristian for his great strength, loyalty and the key role he played in his years that will always be remembered as among some of the most glorious in Inter's history.
"Inter wishes to send a warm thanks to the player, as well as his wonderful family, for all he has done for the club."
Chivu joined the San Siro outfit from Roma in 2007 and won three Serie A titles, as well as a Champions League trophy, two Italian Cups and a FIFA Club World Cup.
The veteran full-back was a member of Jose Mourinho's historic treble-winning Inter side in 2010.