Wolves defender Gabor Gyepes' contract has been terminated by mutual consent.
The 25-year-old, whose deal was due to run until the summer of 2008, has been out since March 2006, when he suffered cruciate knee ligament damage.
Boss Mick McCarthy said: "Gabor will continue his rehabilitation in Hungary. It has been a long time to be out.
"Every time he has looked like coming back, he has had another setback. He is not finished, though, and I hope he can return to playing again soon."