Ryan Dorrian has played for the club in two different spells, having previously released by Tim Harris.
Dorrian stuck by Merthyr Tydfil FC during its low point and returned to play for Merthyr Town FC when it reformed winning two league championship medals.
Dozza was a fans favourite, and known for this tough tackling and committed displays.
Manager Garry Shephard said "Dozza has been a great servant to the club for a number of years. Danny and I have had to make a difficult decision, and with Nathan Davies and Luke Jones coming in it meant we had too many players in the middle of the park."
"We know how much Dozza wants to play, and we wanted to be as fair as we could to him."
Club secretary Jamie Mack said "I am sorry to see Ryan leaving. He has played for the club for a number of years, and has played for us when he probably shouldn't have at times. He has been a great servant and will always be welcome at the club".
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