The 32 year-old has agreed to a mutual termination of his contract.
Mitchell joined Hibs last August to provide back up to First Team goalkeepers Matt Macey and Kevin Dąbrowski for the 2021/22 season.
The Club would like to thank David for his professionalism during his time at Easter Road, as well as the support he provided to the coaching team as Interim Goalkeeping Coach towards the back end of last season.
Speaking to hibernianfc.co.uk, Mitchell said: “It’s been a tough decision but I am now at an age where the most important thing for me is playing.
“The manager was very understanding and the Club made the process very easy for me. Everyone at Hibs has been amazing during my time here and I’ve loved every minute of it.
“I’d like to thank all the Hibernian staff, fans and my teammates for making it such a brilliant experience and making me a real part of the Hibs family."
Mitchell’s departure allows promising 17 year-old goalkeeper Murray Johnson to increase his involvement with the senior squad with a clear pathway to our First Team in the years to come.