The 22-year-old signed a one year deal at the New Bucks Head last summer after joining the club from Alvechurch.
The forward, who began his career with Birmingham City before joining AFC Bournemouth, played a handful of games for the Bucks.
However, under former bosses Gavin Cowan and Dennis Greene he was behind Jason Oswell and Kai Williams in the pecking order.
And with the arrival of Andre Wright in the transfer window - Hamilton was set to fall further down the line.
Announcing the news on social media, the Bucks said: "AFC Telford United can confirm @TyrellHmilton9 will depart the club today after reaching a mutual agreement.
"We would like to wish Tyrell all the very best the rest of the season."