The 30-year-old Scot returned for second spell at Fir Park in January after a spell with Burton Albion in England’s League One, but he found it difficult to break into the first team under manager Graham Alexander and has made just one substitute’s appearance this season in the cinch Premiership.
Lawless’ deal with the Steelmen had been due to expire in the summer of 2022, but with opportunities in the first team becoming increasingly limited, a termination of his deal was agreed.
A statement on the Motherwell website read: "Steven Lawless has left Motherwell, after the club and the player mutually agreed to end his current contract.
"The 30-year-old returned to the club in January of this year from English League One side Burton Albion, with a deal to the end of the current campaign.
"We would like to thank Steven for his two spells at Fir Park and wish him every success in his future career.”
Motherwell have made a good start to their campaign, sitting fourth in the league and having lost just two matches against Hibs and Hearts.
Alexander’s men drew with Rangers at Ibrox and defeated Aberdeen at Fir Park.
Lawless found his route into the first team blocked by new signing Kaiyne Woolery, who scored against the defending champions, and Dutch forward Kevin van Veen, who can operate out on the flanks and has impressed since his move from Scunthorpe.