Gudjonsson confirmed that some of the comments had been taken out of context but admitted others and this was the second time in weeks that he'd made such comments.
Having carried out their investigation the club confirmed that the player would leave Burnley with immediate effect by mutual consent with his contract due to expire this summer.
Signed in January 2007 by Steve Cotterill from AZ Alkmaar, he played 109 games for the Clarets of which 53 were as a substitute. He made ten appearances in the Premier League but his only start came in the 5-0 defeat at Spurs in September 2009.
He becomes the second of the Wembley 2009 players to leave the club.