The former Wales centre has had his request to leave granted by Stradey Park management, and will now explore further career opportunities.
'I have enjoyed my time at Stradey Park but feel that the time is now right for me to seek a fresh challenge,' said Davies, last season's club captain.
'I am looking forward immensely to these new opportunities.'
Scarlets chief executive Stuart Gallacher said: 'While Leigh will be missed, centre is a position where we feel we have sufficient cover.'
Davies joined the Scarlets from Bristol three years ago, but a succession of knee injuries have limited his appearances.
As a result, the 28-year-old fell down the centre pecking order behind Matthew Watkins, Tal Selley and Mark Taylor.