Foy released from Forest
Foy has failed to figure in manager Paul Hart's first-team plans for the past 15 months.
The Republic of Ireland under 21 international's contract was set to expire next summer but both parties have agreed to termination so Foy can begin his search for a new club.
Foy, first burst onto the scene in September 2000 after graduating from Forest's youth academy system.
He played 19 games in all that season, scoring in the 3-1 win over Tranmere Rovers.
The 20-year-old left back featured in the first two games of last term but has failed to make a single appearance since.