The former Sunderland forward returned to the Ghana Premier League last season when he joined the Royals on a one-year deal.
However, a series of niggling injuries restricted him to just seven appearances for the Royals in all competitions.
Legon Cities’ Communications Director, Kwame Dwomoh Agyemang, has confirmed that the club has released Gyan after his contract expired.
“We had a one-year deal with the player and the one year has since elapsed. The two parties have decided to go their separate ways, so the deal was not renewed,” he told the Graphic Sports.
“After the contract was reviewed, the club and the new manager wanted to go in a certain direction and as a club, we believe that should support the coach.”
Meanwhile, Gyan recently indicated his readiness to play for Asante Kotoko before he retires from football.
“Anything is possible. Asante Kotoko is my childhood club and I support them. I want to wear the jersey of Kotoko, even if it’s for one day I will be okay. I would be glad but I’ve to look at the body and my health first,” he told Otwinoko TV, as quoted by Myjoyonline.
“If it is Kotoko or any other club, it will be fine but the most important thing is for me to be fit and ready again to play.”
The 35-year-old, however, noted that he was currently not in a position to play for any topflight side and was hoping to return to active football early next year.