The 27-year old Australian international was one of 11 players axed by the Seasiders who were this season relegated to the Championship after finishing second bottom on the Premier League table.
Carney made just 11 appearances in the league and had his season cut short by a shoulder injury which he required surgery on recently.
The former FC Twente left-back will now go on the lookout for a new home this summer as he strives to get himself back to full fitness.
Blackpool>It's kicking off again! Click here for your No1 source for Blackpool transfer market news and gossip.