The former Celtic and Aberdeen midfielder has quit the Pars after receiving an offer from Bali United in Indonesia.
A statement from the club read: “Willo had highlighted that it had always been his ambition to continue his playing career abroad, and had been seeking such a move over the last couple of seasons.
“However, no opportunity had arisen, until last weekend. He has now received an attractive offer from Bali United.”
Dunfermline boss Allan Johnston admitted he was “disappointed” to lose Flood, adding: “He had a clause in his contract for a very short window to allow him to move abroad.
“There is simply no point in retaining an unhappy player at our club.”
Johnston confirmed that the Championship side had retained the first option on the Irishman if he returns to Scotland.
Flood added: “I would like to thank Allan and the club for their understanding in this matter, as I fully appreciate it leaves them in a very difficult and embarrassing position.
“This opportunity is just too good for me and my family to turn down. I have only been in training for a week, but I have really enjoyed my short time at East End Park and genuinely wish the club every success this season.”
Founded in 1989 as Putra Samarinda, the team relocated to Bali and rebranded as Bali United in 2014. Flood will link up with former Tannadice team mate Nick van der Velden at the club.