Chambers signed in 2016/17 amidst interest from Scottish side Ross County, before impressing on loan at Cinderford Town.
After a spell in Sweden, Chambers returned to City and made a real impact in pre-season before signing a contract with the club for the new season.
Despite having featured for much of the first part of the season, squad rotation has found Chambers’ opportunities restricted and his desire for first-team football has seen him look for opportunities elsewhere.
Manager Marc Richards told the club`s official website: “Karnell and I have had many frank conversations and unfortunately I can’t guarantee him the amount of first-team football he wants.
“Our fixture schedule requires that I rotate the players to keep the squad as fresh as I can and Karnell’s desire to play every minute of every game has left him frustrated at points.
“I and everyone involved with Gloucester City Football Club would like to thank him for his efforts and wish him all the best in his future career.”