In a statement on his Instagram account on Tuesday night, Cahill said he was disappointed to leave the club but has been told he isn’t part of their plans going forward.
“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 for the 2016 season having only just signed a new contract in November,” Cahill said.
“This is very sad especially after what I feel I have helped to build in Shanghai Shenhua on and off the park.
I'm very sorry to announce that I have reached an agreement with Shanghai Shenhua to terminate… https://t.co/OA3htt2v9k— TIM CAHILL (@Tim_Cahill) February 16, 2016
“Just thinking about saying goodbye to my team-mates and especially the amazing fans is heartbreaking.
“Regardless of whether my contract is being honored and paid out in full, I would much rather have seen it out and finished what we started. I will always think about what could have been for us as a club in 2016.”
Cahill said he would know more about his next move in “the next 48 hours once the final details have been completed”.
He’s likely to gain interest from elsewhere in China given his excellent form and goal-return last season but could also opt to head home and play in the Hyundai A-League.
“I would like to thank the amazing Shenhua supporters, the Chinese staff members and all my teammates for your amazing support; you will all be remembered by my family and myself,” Cahill continued.
Cahill, 36, is keen to continue his playing career for both club and country, especially with the Socceroos well into their qualifying quest for the 2018 FIFA World Cup in Russia.
Australia's greatest ever goal-scorer, Cahill has netted 45 goals in 88 appearances for the Socceroos.