Kenny was signed by former manager Neil Warnock.
Kenny was brought to the club by former manager Neil Warnock in 2012 after previously playing under Warnock at Sheffield United and Queens Park Rangers.
The decision was announced on the club's twitter page:
BREAKING: We can confirm that Paddy Kenny has left the club by mutual consent. The keeper made over 70 appearances for the club #lufc— Leeds United FC (@LUFC) August 18, 2014
There were reports earlier on in the summer that Kenny had been sacked by the club's owner Massimo Cellino because of the date the Irish international was born on, 17 May, with Cellino holding the belief that 17 is an unlucky number.
Marco Silvestri looks as if he will be Leeds' number one goalkeeper for this season having started the first two Championship games of the campaign, including this weekend's 1-0 win over Middlesbrough at Elland Road.
Silvestri signed for the club this summer from Chievo for an undisclosed fee with the 23-year-old evidently viewed as a long-term choice at the club.
36-year-old Kenny made 81 appearances for The Whites and given the reports earlier in the summer it is of little surprise that Kenny's time at the club has come to an end.
It will be interesting to see what Kenny does next - whether he will look for another club or maybe even consider retirement. But given that the career of goalkeepers tends to last longer than those out of outfield players, Kenny will probably begin a search for a new club.