Sevilla said in a statement that both the club and the player had agreed to part ways. The 30-year-old Isco scored one goal in 19 appearances for Sevilla.
Once considered one of Spain's most talented playmakers, Isco arrived in August as a star signing of Sevilla with the hopes of reviving his career after he had become a rarely used reserve for Real Madrid.
Sevilla is struggling this season. It replaced coach Julen Lopetegui with Jorge Sampaoli in October. It is in the relegation zone in 18th place.
(For more sports news and updates, follow Ahram Online Sports on Twitter at @AO_Sports and on Facebook at AhramOnlineSports.)