The Ivorian only lasted three months with the Greek side after re-joining it on a free transfer once his contract with Manchester City expired last summer. Toure joined Olympiacos during the 2005-06 season before developing into a star at AS Monaco, Barcelona, and City.
"Yaya is and remains an important member of the Olympiacos family, who has marked a central part of the history of the club. Olympiacos would like to thank him for everything he has offered to the Club," the team said in a statement.
"Yaya will remain deeply devoted to the Club and wishes to Olympiacos lots of success. Yaya is leaving as a friend and the doors at Olympiacos will always be open for him. Our paths will surely cross again."
The 35-year-old made just two starts and a pair of substitute appearances during his brief stint in Athens.
According to a Greek radio station, as translated by the Mirror, Tuesday's decision comes after Toure fell short of manager Pedro Martins' expectations.
Toure is a free agent once again, but he has yet to indicate if he'll sign on with a new team this season.