The former England striker joined the Turkish Super Lig club in August 2019 after his release from Liverpool.
Sturridge has scored seven goals in 16 appearances across all competitions this season.
A statement on Trabzonspor's website read: "The professional footballer contract signed between our company and our professional footballer Daniel Andre Sturridge, dated 21.08.2019 and ending 31.05.2021, has been mutually terminated.
"In accordance with the termination agreement, the football player gave up all his forward-looking rights and receivables."
It is unclear what Sturridge's next move will be but he has been linked with a switch to David Beckham's new MLS franchise Inter Miami, who lost their first professional match 1-0 to Los Angeles FC on Sunday.
However, the Englishman will have to wait until the end of the season before joining a new club after being hit with a worldwide ban after the Football Association (FA) successfully appealed against an original ruling over his breach of betting regulations.
Sturridge was originally hit with an effective playing ban of two weeks and fined £75,000 last July after a Regulatory Commission deemed he had provided inside information to his brother Leon over a possible transfer to LaLiga side Sevilla, which failed to come to fruition.
The FA launched a challenge against that ruling as the body felt it was too lenient a punishment.
An independent Appeal Board has upheld the appeal, after finding the commission misapplied FA rules and proved two further charges against Sturridge that had originally been dismissed.
Consequently, he has been banned from all football-related activity until June 17 and had his fine doubled to £150,000.
"Daniel Sturridge has been suspended from all football and football-related activity from today until the end of 17 June 2020," an FA statement read.
"Following an appeal by The FA of the previous findings of the independent Regulatory Commission in this case, an independent Appeal Board has found that the Regulatory Commission misapplied The FA's Rules in relation to the use of inside information and made findings of fact which could not be sustained.
"As a result, the Appeal Board has found proven two further charges which were originally dismissed. Other factual findings of the Regulatory Commission were left undisturbed.
"In relation to the sanction, the Appeal Board agreed with The FA that the penalty originally imposed on Mr Sturridge was unduly lenient and therefore increased his effective playing ban from two weeks to four months. The Appeal Board also doubled the fine to £150,000.
"FIFA has confirmed that the suspension will be of worldwide effect."
Sturridge spent six years at Anfield, in which he scored 67 goals in 160 appearances, and has also represented Manchester City, Chelsea, Bolton Wanderers and West Brom.
The 30-year-old also has also scored eight goals in 26 England appearances.