Fenton, 24, was unhappy to be left out of the recent 1-1 draw at Warrington Town and subsequently declared his wish to leave the club.
A club statement said: “With the player on a big contract & just coming back from a paid injury absence of four weeks the Chairman and 1st team manager Martin Carruthers reluctantly agreed to this request.
“The club would like to thank Kieran for his efforts over the last 2 years & wish him all the best in the future.
“The club states it does not have a policy of releasing contracted players from their Contracts but felt it necessary in this instance.”
Fenton was previously with Worksop Town and Tamworth.
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