Monty Panesar will leave Sussex at the end of this season, his fourth at the club.
The 31-year-old England left-arm spinner - who has played in 48 Tests, 26 one-day internationals and one Twenty20 international - has been allowed to go on loan, at his request, to Essex for the rest of this campaign.
Panesar’s career was boosted by his move to Sussex from original county Northamptonshire in November 2009, one mainly motivated by the prospect of top-flight LV= County Championship cricket, leading to a Test recall at the start of 2012. He has made nine Test appearances since then, all on winter tours.
A Sussex statement read: ‘The club's investigation into the recent incident which took place on Monday 5th August has been concluded, and both parties have reached agreement. He will become a free agent as of Friday 27th September 2013.’
Sussex chief executive Zac Toumazi said: "Clearly this season has been a very difficult time for Monty Panesar. Having reviewed the whole situation the club has agreed that Monty be released from his contract. This will give him every opportunity to put his personal and professional life back on track."
Panesar has been a consistent performer for Sussex with first-class wicket hauls of 52, 69 and 53 in his first three campaigns. This season he has 26 format scalps.
Sussex professional cricket manager Mark Robinson added: "Monty has been an integral part of the professional cricket team and has been a valuable contributor to the overall performance of the club during his time at Sussex. He is an outstanding bowler. I would like to thank Monty for his contribution and wish him well for the future."