Amakhosi announced on Wednesday afternoon that they had reached an agreement with the 29-year-old former Bafana Bafana frontman.
Manqele was transfer-listed at the end of last season alongside Siyanda Xulu and Siphelele Mthembu, and according to football manager Bobby Motaung, the club never registered the player with the PSL during the January transfer window.
“Manqele was transfer listed at the end of last season but was not signed,” Motaung told the Amakhosi website.
“After speaking we agreed it was best to release him so that he can find a new home and continue his football career,” added Motaung.
Manqele realised his childhood dream of wanting to play for the Glamour Boys in August 2015 after he was signed from Chippa United.
However, despite Steve Komphela's faith in him, the Randfontein-born marksman struggled to rediscover his old form.
He made eight appearances in all competitions for the Soweto giants this season, but he wasn't able to find the back of the net.
Chiefs thanked Manqele for his contribution, and wished him well in his future.