The 30-year-old fast bowler was scheduled to make his last appearance in Sunday's Friends Provident Trophy game against Middlesex Crusaders but East confirmed that Nel has been released following their 106-run defeat to Kent.
Nel, who may return to England later in the summer with the touring South Africans, is available to play for Mumbai Indians in the lucrative Twenty20 tournament on Sunday.
East confirmed that Nel, who appeared in three LV County Championship and three Friends Provident Trophy matches for Essex, left on good terms.
"The club has given its full backing to Andre with his request to leave after the Kent game on Friday," East told www.essexcricket.org.uk.
"It is an honour for Essex to have players in their ranks who are attracting the attention of those teams competing in the Indian Premier League.
"We thank Andre for all his efforts during this latest stint with the county.
"Once again he has proved a very popular member of our dressing room and has played his part in the team's excellent start to the campaign."
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