The Eels announced their decision to release Foran on Friday afternoon in a short statement on the club website.
"The Parramatta Eels have today granted Kieran Foran a release from the remainder of his contract with the club. The Eels wish him well for the future," the statement read.
Earlier on Friday, Eels coach Brad Arthur was resigned to losing Foran after the New Zealand international officially requested a release earlier this month.
Arthur was considered instrumental in luring Foran from Manly over the summer in what was trumpeted as the greatest signing in Eels' history.
But his stint in blue and gold lasted just seven games before suffering a season-ending shoulder injury in round 12. He also missed time after checking into a rehabilitation clinic in April.
His release is the latest blow for Eels fans in a disastrous 2016 that has included the cap saga, the subsequent sacking of club executives and Corey Norman's sex tape and drug charges.
Asked if it would be tough to see Foran walk away, Arthur said: "Look, it's not tough.
"Kieran's got to do what's best for him, for his health. I'm supportive of that. I've got 38 other players here that I need to focus on."
Pressed on whether he'd be disappointed seeing Foran in another jumper, he said: "That's up to Kieran."
The upside: Foran's departure leaves the Eels flush with cash within their salary cap to hit the free agent market, which could include code-hopping superstar Jarryd Hayne.
The club have also yet to re-sign off-contract players Corey Norman, Isaac De Gois, Danny Wicks, Vai Toutai and Jeff Robson.
However, despite the introduction of an interim board last week, Arthur said he was still unsure when he could begin signing players for the 2017 season.
"We don't have any clarity around the cap at the moment. We can't do anything until we get that ... It's not ideal but it is what it is. We just have to move on," he said.
-AAP
