With the former Liverpool star's pay packet deterring suitors from making an offer, the financially crippled club were keen to offload his wages.
The former England international was signed by Terry Venables from The Reds for £2.75 million in August 2002, but failed to make the desired impact.
Once Venables departed the writing was on the wall for the 30-year-old, who is now expected to join hometown club Hull City on Wednesday.
Barmby, who has 23 England caps, is vastly experienced having played for Tottenham, Middlesbrough, Everton and Nottingham Forest in his career.
