
The 37-year-old former Manchester United, Chelsea and Benfica midfielder’s contract had been due to run until June 30, 2026.
However the club has opted to shed one of its highest-paid players as part of its effort to significantly reduce its payroll.
Matic arrived in January 2024 from league rivals Rennes and played a key role in helping Lyon move from last at the 2023-2024 winter break to finish sixth, qualifying for the Europa League, and playing in the French Cup final, losing 2-1 to Paris St-Germain.
He has made a total of 58 appearances for Lyon who open their campaign at Lens on Saturday.
Matic earned 48 caps for Serbia between 2008 and 2020.