The Sweden international had fallen down the pecking order at the Hawthorns and, after the Baggies signed Thievy Bifoum on deadline day, is now free to find a new club
The Swede moved to the Premier League in August 2012, after five years with Bundesliga club Werder Bremen, but failed to make an impression and is reported to be close to a return to his first club, Malmo.
West Brom sold Shane Long to Hull City in January but boosted their striking ranks on deadline day with the signing of Thievy Bifoum from Espanyol and, after slipping down the pecking order at the Hawthorns, Rosenberg has moved on in search of pastures new.
A club statement read: "Markus Rosenberg has had his Albion contract cancelled by mutual consent and is now a free agent.
"The club would like to thank Markus for his efforts over the past 18 months and wishes him well in his future career."
Rosenberg failed to score a single goal for the Baggies.