Ghana midfielder Michael Essien finally cancelled his contract with Greek giants Panathinaikos on Tuesday with both sides reaching the mutual agreement, GHANAsoccernet.com can exclusively reveal.

The 33-year-old reached the agreement on Tuesday afternoon before bidding farewell to the Greek side Panathinaikos after just one season with the giants.

The agreement paves the way for the former Chelsea midfield supremo to move to Australia to join Melbourne City.

Essien, who previously played for European giants AC Milan and Real Madrid, had one year left on his contract with Panathinaikos.

But talks between Essien's representatives and Panathinaikos progressed well with both sides reached the deal to allow the Ghanaian to leave.

The two sides were in talks for a mutual agreement before the Ghanaian can be declared a free agent which will allow him to join a club of his choice.

The agreement now allows Essien to join any club of his choice without refering to Panathinaikos.

The mutual agreement marked the end of one of the most unsuccessful signings in history of Panathinaikos.

Essien was seeking a permanent release and a payout by Panathinaikos but the Greek side were alerted by interest from several clubs and were seeking to benefit from the likely transfer.

Essien is currently is England training with his former club Chelsea as he eyes the possible move to Australia.

The ex-Ghana international joined Panathinaikos on a two-year deal last year but his spell was blighted by constant injury woes which sparked the quest for him to be released.

Essien was among three players including Abdul Jeleel Ajagun, German’s Jens Wemmer and Stathis Tavlaridis who are being shown the exit door.

Essien, who joined Panathinaikos last season from AC Milan, is the highest paid player at the club with an annual salary of 800,000 Euros.