The 27 year-old, who was on Monday , has endured an unhappy, injury-interrupted spell in Russia after leaving Brisbane Roar at the end of last season.
PFA confirmed on Tuesday that Franjic has left Russia.
"The PFA can confirm that Ivan sought the advice of the PFA's lawyers. This followed the repeated failure of his club Torpedo Moscow to honour its contractual obligations to him," a PFA spokesperson told the Herald Sun.
"The PFA requested that the club remedy the situation, however this was not done and as a result Ivan terminated his contract for just cause, in accordance with FIFA regulations. Ivan is now a free agent and entitled to sign with the club of his choosing."
Having won three A-League championships with Brisbane, Franjic is expected to be hot property as Australian clubs begin to look to next season, with the competition's finals starting on Friday.
The World Game during the January transfer window, only to have the deal fall through after Torpedo had a change of heart.
The versatile, energetic player, who is able to operate in midfield and at full-back, has only made three league starts for Torpedo in 2014-2015.