The Frenchman joined the Glasgow giants in November and made just two appearances for the Hoops.

Celtic say they took an option to terminate the former Birmingham and Wigan midfielder`s contract this month.

Celtic manager Neil Lennon told the club`s official website: "These are the facts. Olivier Kapo signed a contract with the club which allowed us to terminate on January 10, 2011.

"Celtic took this option to terminate as we felt he had not done enough to justify a longer-term contract.

"We were willing to look at an extension to this short term contract with Olivier. However, he was not willing to accept these terms.

"Clearly, everyone at the club wishes Olivier well for the future."

However, Kapo has claimed on his own blog that he took the decision to quit the Hoops after they changed the terms of his contract offer.

He says he was informed this month that Parkhead chiefs wanted to reduce the salary and were offering a shorter-term than initially agreed when he joined the club.

In an open letter on www.zebwe.com, Kapo said: "I wanted to inform you of my decision to leave Celtic Football Club.

"This is not an impulse or a whim. That is why today I feel the need to explain why, in the interests of transparency.

"On November 4, 2010, I signed a contract which bound me to the club until 2012 with a probationary period of three months.

"During that time, I required no pay. My sole concern was to recover the pleasure of playing.

"A moral commitment was then made by the football management of the club that my trial period would be converted, as expected, into a contract of 18 months.

"I began looking for an apartment for my family and a school for my children. My future was with Celtic.

"On January 11, there was a twist. The executive management called me and said my contract would be changed. My salary would be divided by three and would now expire on June 30, 2011.

"The position of the club was a 'lack of experience', because four games had been postponed due to the weather and I had been out injured with a thigh injury in late December, from which I have now fully recovered.

"I still do not understand this sudden change of situation. I feel a deep injustice, even though the coaching staff wanted me to stay.

"Despite the insistence of Neil Lennon, I did not want to stay longer in a situation where a young coach, who was an experienced player, is not able to impose his choices on the financial management.

"I wish to thank all staff at the club, the fans and my team-mates for their warm welcome and support during my three months. I extend my best wishes for their success."