The 30 year old has not been able to make any sort of impact since joining United due to injuries, during his time at Old Trafford he only managed 39 appearances in four seasons.
“This has been a difficult decision knowing how hard the lad has worked to win back his fitness,” said Ferguson.
“But we have made it in the hope he will be able to resurrect his career elsewhere.”
It’s highly unlikely, however, that a return to playing days will come to pass for Hargreaves as he continues to suffer with tendinitis.
Fergie splashed £17million in the summer of 2007 for the defensive midfielder who arrived from Bayern Munich with a sterling reputation.
Sadly, for him, he now needs to look for a new club that is willing to take a gamble on his fitness.