Ndulula joined the Chilli Boys at the start of the season as one of their high-profile signings from Kaizer Chiefs.
However, he struggled to rediscover his old form under Dan Malesela in the first half of the season - and therefore made no appearance for the club's first team.
There were indications toward the end of last year that Ndululu could be shown the exit door, but Chippa United insisted that he was still part of their plans.
Now, the former Bafana Bafana frontman will have to look for a new home after being handed his clearance.
Chippa thanked 'Drogba' for his professionalism and wished him well in his future.
“The club would like to thank Bongani Ndulula for his professionalism throughout his short stint in Port Elizabeth‚” reads the statement.
“The player carried himself as a professional and had a good relationship with the supporters.”
“We would also like to thank him and his management team for the manner in which they handled the negotiations between the two parties.”
“We wish the player all the best in his future endeavours.”
Ndulula joins goalkeper Ayanda Masiko and former teammate at Chiefs Simphiwe Mtsweni, who were also released by the club.