The 28-year-old, who is originally from North Lanarkshire, became the focus of criticism after a photograph emerged on social media of him wearing a T-shirt bearing the slogan "Up The Ra" at a Wolfe Tones gig at Feile An Phobail in west Belfast on August 14.
The club announced the next day that Herron had been suspended while an investigation was carried out.
Herron also received a 10-game ban from the Irish Football Association.
The historic republican slogan is contentious as it has denoted support for the Provisional IRA in the past.
In a statement on Monday night, Larne Football Club said: "We can confirm John Herron has left the club, after his contract was terminated by mutual agreement.
"We would like to take this opportunity to reiterate our total commitment to being an inclusive football club.
"We will continue to be unwavering in our work to make Inver Park a place for all and will not allow this to be undermined in any way, shape or form.
"The club will be making no further comment on the matter."
He is understood to be back in Scotland considering his options.