The 23-year-old, younger brother of England international Ashley, had suffered with injuries during his year with the Glovers which saw him make just two League One starts.
An official statement said: "The club has decided that now is the best time for Lewis to depart in order for him to be able to find a new club as soon as possible.
"All at Yeovil Town would like to wish Lewis all the best for the future."
And those new employees could be Notts County after Gary Johnson confirmed Young has been training with the Meadow Lane club.
"I think he's doing very well at Notts County, where he's been up there for a week or two, and I think they're probably just about ready to sign him," Johnson told the BBC.
"So that's good, because at his age he needs first-team football now somewhere. He can't be sitting on my bench for another season."