Pogba, 33, won the World Cup with France in 2018 but since serving a ban for doping has struggled to return to the elite level.
Monaco said in a statement that the objectives they had set for Pogba were "only partially achieved" and the Ligue 1 club were therefore ending his contract that would have run until June 2027.
Pogba is currently sidelined with a thigh injury, just after returning from a knee problem.
Monaco paid tribute to the player's "remarkable mindset, determination and unwavering high standards" and said even when injured he had had a positive influence on the Monaco squad by "sharing his experience and know-how" with the other players.