City release Kerkar
The Algerian joined The Citizens from Le Havre in the summer after a brief trial, but he has been unable to force his way into the first team picture with compatriot Ali Bernabia and Eyal Berkovic in his way.
The 25-year-old will now look for a new club after his deal expired earlier this week.
"We are allowing Karim Kerkar to go," confirmed manager Kevin Keegan.
"He has done okay but he has not been able to force himself into the first team picture, of course neither has Ali Benarbia. If you look at it that way it is not surprising.
"We had agreed a deal which kept him here until December 14 and on that date or before it we had to agree if we would let him finish off the year's contract and obviously we decided not to.
"He wants to play regular first team football. He did not come here to play reserve team football. He came to me and said that there was no point and I agreed with him if that was the way he felt.
"It has been one of those deals and I think there will be a lot of those type of deals in this transfer window when it opens."
The player's agent Willie McKay revealed to Planetfootball.com that he is actively looking to find a new club for Kerkar.
"I am looking for a club for Kerkar," said McKay. Things did just not work out for him at City as he could not get into the team.
"He is keen to stay in England and he is good enough for a First Division or Second Division club as he is a competent versatile performer."