Carney exits after his second stint with the Sky Blues having played a total of 137 games over four and a half seasons and scoring 28 goals.
The 34-year old helped Sydney win back-to-back Premierships, the 2017 Grand Final victory and the 2017 FFA Cup win and is looking at overseas options.
“I’ve thoroughly enjoyed my second spell at Sydney FC and this club has provided me with memories that will last a lifetime,” said the winger.
“I’ve given my all for the club and achieved everything that there is to achieve and I feel it’s the right time for me to move onto the next stage of my career.”
“I’d like to thank all of the coaching staff, players, members and fans for their support, it really has been an incredible last few years and I’m looking forward to the challenge ahead.
“I’d like to wish Steve Corica and the whole club the best for the future.
"I’ve played with Steve and known him a long time and I am sure he will do a fabulous job with the team.”
New head coach Corica paid tribute to the contribution the former Socceroo has given to Sydney FC.
“He will be remembered as one of Sydney FC’s favourite sons having won two A-League titles, two Premierships and an FFA Cup.
“We have a strong nucleus of players to build on to continue our success next season and we will be working hard on the areas that we need to strengthen ahead of pre-season starting in July.”
Two other Sky Blue squad members, Fabio Ferreira and Anthony Kalik, will also leave the club.
Kalik returns to his parent club Hajduk Split following his loan move while Ferreira leaves after 3 months.