The Algerian international, who was born in France, signed a one-year deal at Bramall Lane in September last year but has since made just two appearances for the club due to injury.
The 36-year-old earned 62 caps for Algeria and has previously played for Wolves, Nottingham Forest, Crystal Palace, Watford and Middlesbrough.
Between the Premier League and Championship, he made 218 appearances in English football before joining up with Jokanović in Qatar with Al-Gharafa.
The experience of the player looked like it would benefit United in their first season back in the Championship but the player has now left the club.
A club statement confirmed: "United can confirm an agreement has been reached to mutually terminate the contract of midfielder Adlène Guedioura.
"The Algerian international joined the Blades in September last year but injury has restricted him to just two appearances for the club.
"His departure was finalised late on Monday evening."
