Edjenguele, 26, joined the Sky Blues last summer and made 40 appearances last season, 37 of which were starts, but he has failed to feature at all this term.
And manager Steven Pressley has now opted to part company with the Frenchman, who is reportedly interesting League Two club Bury.
A statement on Coventry's official website read: "Coventry City would like to take the opportunity to wish William all the best in his future career."
Edjenguele's departure comes as City, who were under a complete transfer embargo from March until the start of August, now operate in the market under the watchful eye of the Football League.
The crisis club have already brought in Mathieu Manset and Andy Webster earlier this month having been given special dispensation by the League, which allows them to trade depending on cost and players moving out.
Edjenguele's exit, along with that of goalkeeper Chris Dunn last week, means Pressley now has room for manoeuvre to bring in further recruits.