The Bundesliga club said on Wednesday the player's contract that ran until the end of the season had been dissolved.
Camoranesi joined last summer from Juventus but failed to make any impact and Stuttgart are struggling in 17th place just three points above bottom side Borussia Moenchengladbach.
"That is football," said Camoranesi who helped Italy win the World Cup in 2006. "Sometimes things happen which you cannot predict. Unfortunately it did not work out on a sporting level but I felt here very much at home," he said.
The Argentine-born 34-year-old fetured in only seven league games this season and was sent off once.
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