The 38-year old, who won 17 caps for his country, has found chances limited since his summer move from Leicester City and has now decided to look for pastures new.
Ferdinand made 12 appearances for Bolton during his time at the Reebok Stadium and scored a solitary, yet memorable goal in the game against Manchester United back in September.
His last appearance for the club came as a substitute against Lancashire rivals Blackburn Rovers just under a week ago when he replaced Stelios Giannakopoulos.
Sam Allardyce confirmed that the Londoner was keen to end his career nearer to home and thanked the ex-QPR, Newcastle United and Tottenham Hotspur forward for his brief contribution.
"Les has had limited opportunities at first team level and we agreed that he could leave the Club for a fresh start. He is keen to move closer to his home and I am sure that's what he'll do now. I would like to thank Les for his service to Bolton Wanderers."
"Sir Les" as he has become known throughout his career, has been linked with a return to QPR and Premiership side Southampton. Bolton Mad would like to wish him well wherever he ends up.