The 22-year-old began his career at Manchester United before a move to West Ham in 2012 but failed to establish a first team place at Upton Park, making 24 appearances and scoring 5 goals in all competitions in three years at the club.
"West Ham United can confirm that the club have reached agreement with Ravel Morrison to terminate his contract with immediate effect," said a statement on the club's website (www.whufc.com).
Morrison, now a free agent, has been heavily linked with a move to Lazio. Some British media reports have suggested he has agreed to join the Serie A club at the end of the season.
Once described by Alex Ferguson as the most talented youngster he had ever seen, the midfielder's career has been overshadowed by a series of disciplinary matters off the pitch.
He endured a tempestuous relationship with West Ham manager Sam Allardyce, who questioned his work ethic and honesty over injury claims, and was loaned to Birmingham City, Queens Park Rangers and Cardiff City during his Upton Park career.
(Reporting By Sam Holden, editing by Alan Baldwin)
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