"F.C. Internazionale would like to announce that the club has terminated Nemanja Vidic's contract by mutual consent," Inter said on its website.
Vidic, who formed a formidable partnership with Rio Ferdinand at the heart of the United defence and won five English league titles as well as the Champions League in 2008, thanked Inter and the club's fans.
"I would like to wish the club the greatest success in the future. Forza Inter forever!" added the 34-year-old.
(Writing by Peter Rutherford; Editing by Greg Stutchbury)