Fred has severed ties with French champions Lyon.
Les Gones confirmed in a statement the striker, whose contract was set to expire at the end of the season, should now join a club back in his native Brazil.
"Lyon inform that Fred has taken the decision to terminate his contract while he was staying in Brazil during his suspension," the statement read. "The termination of his contract with Lyon takes effect this evening (yesterday) and is going to allow him to join a Brazilian club."
It brings to an end a long-running episode which began a year and a half ago.
Fred, 25, lost his place in Lyon's starting XI at the beginning of last season after breaking his foot on Brazil duty during the Copa America.
On his return to action, he could not oust fellow frontman Karim Benzema from the first team and came close to leaving Les Gones in the transfer window in January 2008.
He decided to stay but was in and out of the Lyon side in 2008.
Family problems and fears for his international ambitions saw him again agitate for a move at the back-end of that year but he could not clinch a transfer away in last month's January window, despite strong interest from Brazilian clubs Palmeiras and Fluminense.
He is expected to sign for Fluminense over the next few days.
Fred, who was suspended by Lyon on February 20, spent just over three-and-a-half years at the Stade Gerland, winning three Ligue 1 titles and one Coupe de France.