Majoro joined the club from Orlando Pirates at the start of last season, and he helped them win the Telkom Knockout title last season.
"As one of the founding members Major will have a special place at this club. He loved it like a family and over his time here he defined what it means to be a Cape Town City player," the club said in a statement.
"Major was in the last few months of his contract so rather than hold him until May, we decided to support him to find a new club where he can extend his career a few more years and get more game-time. We welcome his return after football in Cape Town, and for now we wish him well," the statement continued.
Majoro managed only 10 starts this season as he fell out of favour in the attacking department.
His overall record for the club has seen him find the net 11 times in 41 appearances.
He is heavily linked with a possible move to SuperSport United, while Bidvest Wits are also believed to be interested in his services.