"I'm very sorry to announce that I have reached an agreement with Shanghai Shenhua to terminate my contract after being told that I'm not part of the new coach Manzano's plans... having only just signed a new contract in November," the 36-year-old Australian said on Instagram on Tuesday.
"Just thinking about saying goodbye to my team mates and especially the amazing fans is heartbreaking."
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Chinese football clubs have been on a spending spree in their current transfer window which runs till Feb. 26, making a host of big-name European signings including the likes of midfielders Alex Teixeira and Ramires and Atletico Madrid striker Jackson Martinez.
Cahill, who played for Major League Soccer side New York Red Bulls after spending eight years with Everton, has scored 45 goals in 88 appearances for Australia.
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