The 34-year-old joined the Scottish side from Burnley in the summer and declared at the time: "I am so grateful and so happy to finally be a Rangers player, and I am really looking forward to the challenges ahead."
However, things did not go to plan at Ibrox for the controversial star, whose spell at St. James' Park between 2007 and 2011 had several ups and downs.
A Rangers statement on Thursday read: "Rangers and Joey Barton have agreed to terminate his contract with immediate effect.
"Neither Rangers nor Joey Barton will comment further."