Hartlepool have announced they will not sign convicted rapist Ched Evans after boss Ronnie Moore expressed an interest.
Arsenal manager Arsene Wenger insists he will only spend money in January on the right player.
The 26-year-old was signed by Ian Holloway, who also worked with Grandin at Blackpool during the player's three-year spell.
Grandin only played one match during his time at Palace, the 2-1 defeat to Bristol City in the Capital One Cup last August.
"Crystal Palace Football Club can today confirm that Elliot Grandin has left the club by mutual consent," a statement from Palace read.
"Crystal Palace would like to thank Elliot for his services to the club and we wish him all the best for his future career."