Monaco said the decision followed a joint conclusion that objectives set when the 2018 World Cup winner joined last summer had only been "partially achieved."
The midfielder's deal had run until June 2027, but the club moved to end it early after a fresh injury setback compounded a season in which fitness issues restricted him to just six appearances, five as a substitute.
Pogba, 33, arrived at Monaco last year as a free agent after the Court of Arbitration for Sport reduced a four-year doping ban to 18 months, having tested positive for a banned substance while at Juventus.
The move was billed as a chance to relaunch a career stalled since 2023, but he never established himself under the club's coaching staff and sustained a further injury during pre-season training in England last week that reportedly hastened the club's decision.
"Representing this club and the principality was an incredible experience," Pogba said.
"AS Monaco is an incredible club and although I did not play as many games as I had hoped, I will always be grateful for the opportunity to wear their colours."
Monaco chief executive Thiago Scuro struck a similarly warm tone in confirming the split.
"When Paul joined, we explained that this was a major challenge, that was audacious and ambitious," Scuro said. "While the outcome is not what we had hoped for, it should not overshadow the enthusiasm that surrounded his return to club football, nor the fact that Paul was able to return to the pitch and to professional football during this period. We wish Paul all the very best for the future."
Pogba's career has stalled repeatedly since he left Manchester United as a free agent in 2022, when he rejoined Juventus for a disappointing second spell that also ended in an early contract termination. Between his two spells at Old Trafford, he made 157 Premier League appearances, scoring 29 goals and providing 38 assists, and remains one of the highest-profile names to have returned from a doping suspension in recent memory.
He is now a free agent once again, with reports suggesting interest from Major League Soccer, including previous links to DC United and Inter Miami, though the recent injury could delay any immediate move. Whichever route he takes next, Pogba's second attempt at rebuilding his career in Europe has ended almost as abruptly as it began.
His surprise social media comments earlier this summer, in which he indicated he expected to remain at Monaco for the coming season, now look to have badly misjudged the club's thinking before talks over his future had even begun.