The Welsh striker, who was recently sentenced to five years imprisonment for rape, is amongst 11 players who have been let go by the Yorkshire club this summer
Evans, 23, was jailed for five years in April after being found guilty of raping of a 19-year-old woman at a Rhyl hotel.
The former Manchester City youth prospect will be eligible for release after serving half of his sentence, but had run down his three-year contract with the Blades.
The Yorkshire outfit just missed out on promotion to the Championship this term, losing on penalties in the play-off final to Huddersfield.
Experienced goalkeeper Steve Simonsen, who missed the crucial spot-kick against the Terriers, has now been released from the club alongside former Everton and England striker James Beattie.
Andy Taylor, Johnny Ertl, Jack Adams, Connor Brown, Seamus Conneely, Corey Gregory, Shane Murray and Marc Warren have also all been let go.
However, striker Chris Porter and midfield duo Kevin McDonald and Lee Williamson have been offered new deals as United build for another season in League One.