The 30-year-old striker is tied to a one-year contract with the Titans for the 2013 season but after 10 games, he is still yet to score a goal.
Chief Executive of T-Team, Abdul Rashid Jusoh, said that Folan has agreed to leave the team after failing to help the club climb the table, in large part due to the lack of goals the team has registered.
According to Sinar Harian, Abdul Rashid said that they are currently testing Igor Sani, a striker who has played for Portuguese club Centro Desportivi Fatina, to replace Folan.
Other than Igor, a few players from Brazil, Nigeria, Cameroon, Croatia and Bosnia are also on trial with the team before the second transfer window opens next month.
T-Team are currently second from the bottom with only nine points from 10 games and have struggled to find goals this season scoring a paltry three times.