The former Tottenham and Portsmouth midfielder had featured just once in 2018, in a cup game against Fraserburgh, after signings in the January window pushed him further down the pecking order.
With little chance of gaining a reprieve under Graeme Murty, it was decided to allow the player an early release from his contract to explore other options.
Kranjcar said in a statement on the Rangers website: “It’s been an honour to have been part of such a big club and to have played for such great fans, it will always remain an honour for me.
“I wish the club success in its future while I now consider the options I have on the table.”
The 81-capped Croatian international was originally recruited by former boss Mark Warburton in the summer of 2016.
His chances of making a significant impact at Ibrox were dealt a devastating blow when a major knee injury in training cut his 2016/17 season short after just three months.
He played 26 times in total under three separate managers and netted three goals.