The flamboyant attacker's contract has been terminated after a disappointing 18-month spell, and he will now try to get his career back on track elsewhere
The Dutchman joined the German side from Liverpool in January 2011, but failed to live up to the high expectations at the Bundesliga club.
Babel has made 51 official appearances for Hoffenheim in the past 18 months, scoring a meagre six goals in the process.
The 25-year-old was demoted to the reserves earlier this summer after head coach Markus Babbel voiced his dismay with the attacker's attitude in training, and he has now been given the freedom to find a new club.
"Five or six clubs have made an approach for Ryan. The plan is to sign a one-year deal somewhere and try and earn a move to a big club again," Babel's agent Winnie Haatrecht stated to De Telegraaf.
The Netherlands international has recently been linked with Serie A side Fiorentina.