An agreement was reached between VfL and the 35-year-old right-back to part ways before his contract expired this summer. Head coach Bruno Labbadia has not included the Dutchman in his matchday squads since an internal incident in the build-up to the game against Eintracht Frankfurt.
"Over the past week we decided that Paul would no longer train with the first team," said VfL Managing Director Jörg Schmadtke. "It was a reasonable conversation and in light of his service to the club, especially given the difficulties last season, we have accepted his request to release him from his contract so that he can make plans for his future."
The three-time Netherlands international joined the Wolves from FC Augsburg in 2017. He would later be named vice-captain, and scored two goals in 36 competitive appearances for the Green-Whites. This season he has primarily been a squad player, making just three outings for VfL.
"We discussed things matter-of-factly and reached this decision together," Verhaegh said. "Despite what has been a tough season for me in sporting terms, I had a great time at VfL Wolfsburg. I wish the club all the best and the team every success for the remainder of the season."
VfL Wolfsburg thanks Verhaegh for the last two years at the club and wishes him and his family all the best for the future.