The 36-year-old has been sidelined with a knee injury since November, but he is close to regaining full fitness and is now aiming to find a new club and resume his playing career.
Former Derby County, Blackpool and Bristol Rovers centre-half Elliott made 190 starts and four substitute appearances for Cheltenham, scoring nine times. He will go down as one of the top defenders to represent the Robins in the Football League.
The door will remain open for Steve to return to the club in a coaching capacity in the future.
Everyone at Cheltenham Town would like to thank Steve for his sterling service and wish him well in his next challenge.
A video interview with Steve can be seen here.