The 25-year-old had spent three years at the Globe Arena but his contract will not be renewed.
A brief statement on the club’s official website said: “Morecambe Football Club have announced that Andreas Arestidou’s contract will not be renewed due to a reduction in the 2015/16 playing budget.”
Shrimps general manager Mark Dixon added: “We would like to thank Andreas for his time at the club and wish him the very best in the future.”
Arestidou joined Morecambe on a free transfer from Preston in August 2012 as back-up keeper.
He made a total of 27 appearances for the club, 17 of those being last season.