The Republic of Ireland international joined from Reading for £6.5million in the summer of 2009 and has made 179 appearances, scoring 33 goals.
Doyle, whose deal was due to expire on June 30, will now be linking up with MLS side Colorado Rapids earlier than expected.
The club said on their official website: “Everyone at Wolves would like to thank Kevin for his service at Molineux and wish him all the best for the future.”
Meanwhile, Wolves have taken up the one-year option on Liam McAlinden’s contract, keeping him at the club until 2016.
But they have decided against the option of a further year for Leon Clarke and Jake Cassidy, who will now leave Molineux.
Head of Football Development and Recruitment Kevin Thelwell said: “Liam made several appearances for us this season either side of loan spells at Fleetwood and we will be looking for him to come back strong for pre-season and press his claims for involvement in the senior squad.
“Leon scored a couple of important goals for us this season before finishing the campaign on loan with Wigan while Jake has been out on loan with Notts County and Southend United this season.
“We thank both of them for the service they have given to Wolves – Leon in two separate spells – and wish them well for the next step in their respective careers.”