The Northern Ireland striker has been told by boss Ally McCoist that his contract will not be renewed when it expires at the end of the season.
Little broke the news on his Twitter page when he posted: "It has been the best eight years of my life.
"Being a Ranger has been an honour and I'll be one 'til the day I die. Thank you to all at the club."
The 25-year-old has endured a frustrating campaign this season after breaking his jaw and cheekbone against Dunfermline in November.
In total, he netted 38 goals for the Light Blues, including his March 2012 winner in a 3-2 derby victory against Celtic before the club was liquidated that summer and demoted to the bottom tier of Scottish football.
Boss McCoist - who has still to confirm whether Ross Perry and Chris Hegarty will also be released by the club - told the Rangers website: "Andy will move on this summer and we thank him for his efforts over the years.
"He has enjoyed some great moments with the club.
"His commitment to Rangers has been excellent and he enjoyed a good partnership up front with Lee McCulloch last season. We wish him all the best for the future."