Harry Charsley has been allowed to come off contract at Everton.
Blues U23 coach David Unsworth confirmed Charsley has been released following the expiration of his six-month contract at Goodison Park.
Charsley, 23, was set to leave after more than 10 years with the club in the summer but was handed a fresh deal after suffering a back fracture in a freak training ground injury towards the end of last term.
The Republic of Ireland youth international went on to make 14 appearances for Everton under-23s this season but is now looking for a new club.
"Harry has been released," Unsworth told the Liverpool Echo following the entertaining 3-3 draw with Arsenal under-23s at Southport on Monday evening.
"His deal was only until January and we were trying to help him out because we had a small squad this year.
"He got injured on our watch so we felt we had an obligation and we felt we had to do the right thing by offering him a six-month contract which we duly did and obviously got him fit over pre-season and got him a few games and profile in the shop window.
"And now that's a matter for Harry to carve himself a career hopefully at the highest level possible for him."