Mutuma has battled for game-time since the arrival of Ernst Middendorp, playing just two games since the German coach took over.
"We have parted ways with Mutuma because the coach said he will not be using him. The player wants game-time and he will not get it here so we have reached an agreement to terminate his contract and give him his clearance," Konco tells KickOff.com.
The 26-year-old only joined Celtic at the beginning of last year from Dynamos but has battled in Bloemfontein. He is now mostly likely to return home and possibly rejoin his former club.