James McClean says Derry City “will always hold a special place in my heart” after he and the club mutually agreed to terminate his contract with immediate effect.

McClean returned to his hometown club from Wrexham in January but had not been included in a matchday squad since July.

Earlier this month, the 37-year-old described an earlier attempt by the League of Ireland club to terminate his contract as “incomprehensible” and said his exile from the squad was “one of the most difficult periods in my life, personally and professionally”.

But in a joint statement released on Wednesday, the club and McClean said they are “satisfied with the outcome and are pleased to move forward constructively”.

“I am pleased that we have reached a resolution to settle these matters,” said McClean.

“While my return to the club did not work out as I had hoped, Derry City FC will always hold a special place in my heart.

“I want to thank the fans for their support, and I wish the squad, the management, staff, and the supporters the very best for the future.”

McClean also wished the team luck in the FAI Cup final against Waterford on 8 November.

Derry City chairman Philip O’Doherty thanked McClean “for his dedication to his hometown club”.

“His achievements extend far beyond the Brandywell; amassing 103 senior caps for the Republic of Ireland is a remarkable milestone, and we want to formally acknowledge his immense contribution to Irish football as a whole,” added O’Doherty.

Having started his career at Institute, McClean moved to Derry in 2008 and spent three years at the Brandywell before joining Sunderland in 2011.

He spent nearly 15 years in the English Football League and Premier League – also turning out for Wigan, West Brom, Stoke and Wrexham – before rejoining Derry in January.

Derry City travel to Sligo Rovers on Friday for their final League of Ireland Premier Division match of the season (19:45 GMT) before facing Waterford in next week’s cup decider at Aviva Stadium.