Manqele joined Chiefs from Chippa United in August 2015 from Chippa United, but the 29-year-old striker struggled to cement his place in the Amakhosi starting lineup.
Chiefs have now confirmed they have elected to terminate his contract prematurely, with a year remaining.
“Manqele was transfer listed at the end of last season but was not signed,” said Chiefs football manager Bobby Motaung.
“After speaking we agreed it was best to release him so he can find a new home and continue his football career.”
Motaung added: “Details of the termination are confidential as agreed between the player and club.”