The Soweto giants announced the decision on Monday as they continue to reshape their squad ahead of the 2026/27 season.
Cele's departure brings an end to his time at Naturena, with the 29-year-old now free to explore opportunities elsewhere after Chiefs opted to bring his contract to an early conclusion.
"Kaizer Chiefs have terminated Thabo Cele's contract by mutual agreement, following constructive discussions between both parties. The decision will allow Cele to pursue new opportunities while Amakhosi continue to reshape their squad for the 2026/27 season," the club said.
Chiefs expressed their appreciation for Cele's contribution during his time at the club and wished him well in the next stage of his career.
"We thank 'Induna Yendawo' for his commitment during his time at Kaizer Chiefs and wish him the very best in his future career," Chiefs added.
Cele's exit represents another change to the Amakhosi squad as the club continues its restructuring process under new coach Fernando da Cruz.
As a free agent, the former KwaZulu-Natal academy player can negotiate directly with interested teams as he looks to take the next step in his career following his departure from the Glamour Boys.
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