The 27-year-old midfielder joined Sunderland in 2014 from Manchester City, but has seen the club relegated twice in the last two years.
He has not made a competitive appearance for Sunderland since September 2017, playing just 104 minutes of Championship football across two appearances all season.
Rodwell scored once in those two appearances.
The player reportedly asked to leave Sunderland in January 2018, but there were difficulties in finding interested parties willing to meet the player's high wage demands.
There are reports Rodwell rejected an offer by the club to terminate his contract then, choosing to train with the youth team instead.
After his long absence from the team, Sunderland manager Chris Coleman told reporters in April 2018 that he did not know where the midfielder was mentally.
During his time with Sunderland, Rodwell went on a remarkable run of 1,370 days of game time without a victory for the Black Cats.
Sunderland fans have become increasingly frustrated towards the player, given the player's high wage and lack of appearances in recent months during the club's decline down the leagues.
Rodwell is reported to earn as much as £73k a week at Sunderland.
Many have celebrated the news of his arranged exit from the club as a sign of Sunderland attempting to turn things around ahead of the new season in League One.
Rodwell has three senior international caps for England, though his last one came back in June 2013 as a substitute against Brazil, while he was still a Manchester City player.
The Southport-born midfielder has made 67 league appearances during his four years at Sunderland, scoring five league goals.
Jack Rodwell has had his contract cancelled by Sunderland.— Keith Downie (@SkySports_Keith) June 27, 2018
The player had one year left on his 73k a year (reduced to £44k in League One) and both parties have come to a financial agreement to terminate his deal.
Rodwell is now expected to sign for an MLS club.
According to The Sun, Rodwell is potentially set to join Greek Superleague side Aris following his departure from the Black Cats.
The midfielder has also been linked with a move to the MLS.