Manchester United said on Tuesday they have agreed with Fabien Barthez to terminate the France goalkeeper's contract from the end of the season.
Barthez moved to Olympique Marseille on a nine-month loan deal in October although he was not able to start playing for the French Ligue 1 side until January because the move had not been registered during the transfer window.
"Manchester United have reached agreement with Fabien Barthez to terminate his contract with the club with effect from 30 June 2004," United said in a statement on Tuesday as they announced a 32 percent rise in first half profits.
The club said there would be a charge of five million pounds to be included in the second half results as a result of a write off of the original cost and compensation.
Barthez, 32, joined United in June 2000 for 7.8 million pounds ($14.18 million) but was dropped by manager Alex Ferguson at the tail end of last season after a poor run of form.
He was replaced in the starting lineup this season by American Tim Howard, who joined from New York/New Jersey MetroStars for 2.3 million pounds in the close season.
United reported pre-tax profits of 26.8 million pounds for the six months to January 31 on turnover of 92.4 million pounds.