The 28-year-old joined the Reds in summer 2024 after leaving Portuguese side Chaves.
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“Barnsley Football Club can confirm that Kelechi Nwakali has departed Oakwell by mutual consent,” a statement from the club read.
“Nwakali joined the Reds in August 2024, making 30 appearances and scoring one goal. The club wishes Kelechi all the best for the future.”
Nwakali, a former Arsenal player, made 30 appearances across all competitions during his time at Oakwell.
He featured prominently during the 2024/25 campaign, making 12 league starts.
His departure brings an end to his spell with Barnsley as he looks set to consider his next career move.