The former Ajax man joined The Blades back in November but he will leave Bramall Lane and likely return home to his native Holland, where he will assist the Division One club with scouting duties.
He was under contract until the end of the season but Boussatta and manager Neil Warnock met on Wednesday and decided to part ways.
"Dries has left by mutual consent, but has done so on the best of terms, despite him being naturally disappointed with the circumstances of the other night (Tuesday against Derby County)," Warnock told the club's official website.
"He felt he wasn't getting anywhere and I couldn't offer him anything for next season at this moment in time.
"If he doesn't get fixed up over here he intends to go back to Holland, but he will still be able to help us as a football agent.
"He has extensive contacts with the major clubs such as Ajax and PSV, and a friendship with Ruud Gullit, who is at Feyenoord, so is well-placed to monitor what is going on over there.
"Having played for us and knowing what the English game is like, he can look for the type of player we would be interested in."
Meanwhile, Blades youngster Kevan Hurst has joined Division Three side Boston United on loan for the rest of the season.
The Pilgrims have brought in numerous faces in the last week and Hurst will look to improve his experience in first team football at York Street this term.
Warnock sees the 18-year-old as a real prospect for the future and has allowed him to pick up some experience with Boston.
