Sharman has made 68 appearances for Northampton Saints but his last outing was back in January.
Since then a knee injury has ruled him out of action, and the club say with no immediate prospect of returning to full fitness, a decision has been made to terminate his contract.
"It is always a shame when someone's contract comes to an end in these circumstances," said Northampton director of rugby Jim Mallinder referring to the injury.
"Brett has contributed a lot to the squad in his time at Franklin's Gardens and we wish him all the best for the future," added Mallinder.
Sharman joined the Premiership club in November 2008.
He said: "I've enjoyed my time at the Saints.
"It is a great club with good people and I am sure that there will be major success coming to Franklin's Gardens sooner rather than later. The players, management and supporters all deserve that and I wish them every success."
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