The former Liverpool, Aston Villa and Lyon striker leaves after four and a half years with the Istanbul club, during which time he scored 63 times in 116 appearances in all competitions.
The 31-year-old hit 20 league goals in his first season at Galatasaray but suffered from dwindling returns in the years since, and had not featured at all for the first team in the 2012/13 campaign. He was due to be out of contract this summer.
"Galatasaray Sports Club notifies the termination of contract with the professional soccer player Milan Baros after a mutual agreement between two parties," read a statement on Gala's official website.
Baros, who scored 41 goals in 93 international appearances for his country, has been linked with a possible return to Czech outfit Banik Ostrava, where he began his professional career in 1998.