Umtiti, 29, is therefore available as a free agent this summer after spending last season on loan at Italian side Lecce.
Barca have not revealed the exact terms of the termination but sources say it will free up some salary space to register new signings.
"Barcelona and Umtiti have reached an agreement to release the player from the contract binding him to the club until the end of the 2025/26 season," a statement from the Catalan club said Friday.
"The club wishes to express its gratitude to Umtiti and wishes him every fortune and success in the future."
Umtiti joined Barca from Lyon in 2016 for €25 million and soon established himself as a regular alongside Gerard Pique in the middle of defence, displacing Javier Mascherano.
After making 83 appearances in his first two seasons with Barca, he made just 50 across the next four before agreeing to join Serie A side Lecce to kickstart his career last summer.
Prior to that he had agreed a contract extension with Barca to spread out how much he was due to earn over a longer period and allow the club to register players in January 2022.
In Italy this past season he has remained largely injury free, making 25 appearances and helping Lecce stay in Serie A.
Iñigo Martínez will also join the club as a free agent from Athletic Club this summer, sources have confirmed to ESPN.
In addition to Umtiti, Barca are also looking to cut ties with defender Clément Lenglet, who spent last season on loan at Tottenham, but sources say his departure is not imminent.