Pinilla joined Hearts from Sporting Lisbon in July 2006 but failed to make the impact expected of him.
The 24-year-old's injury problems hindered his hopes of playing in a run of matches and he made just two substitute appearances last season.
During the 2006-07 season he was allowed to return on loan to his former club Universidad de Chile, however he arrived back in Edinburgh with an injury which meant he missed the start of the following campaign.