Palmer was in the last year of his agreement in Wrexham and was to leave the club this summer after falling the hierarchical order when they reached the second level and strengthened their front line.
He had not played in a competitive match since February, when he marked two halter offs against Hull City in the EFL Cup earlier this month, to send the match to penalties that Wrexham won 5-3.
Palmer also played for Crawley, Leyton Orient, Mansfield, Lincoln, AFC Wimbledon, Luton and Grimsby in his career that saw him play more than 500 games in English football.
Confirming the departure on social media, Wrexham said: “After a historic three and a half years association with red dragons, an agreement was concluded for Ollie Palmer to leave the club by mutual consent.”
The championship club belonging to Ryan Reynolds and Rob Mcelhenney added: “All the best for the future, Ollie!”
