When the midfielder arrived at Kenilworth Road from West Ham United in 2014, the Hatters were a National League club.
He played a key role in their rise through the pyramid, helping the Hatter seal promotions all the way to the Premier League.
However, having slipped down the pecking order, the 31-year-old was loaned to League One outfit Rotherham in February.
He was a regular fixture in the Millers midfield but his exploits were not enough to land him a new contract at Luton.
This summer, the curtain will come down on his stunning 11-year association with the Hatters.
In a statement, the club said: “Leaving the Hatters at the end of his contract, after spending the second half of the season on loan at Rotherham, is our history-making midfielder Pelly Ruddock Mpanzu.
“The DR Congo international departs as a Luton Town legend for his role in our rise from non-league to the Premier League over 11-and-a-half glorious years at Kenilworth Road since signing from West Ham as a teenager in 2013.
“A further tribute to Pelly and his achievements will follow, but let the simple stats speak for themselves: the 31-year-old is the only man to win four promotions and play in five different divisions for the same club.
“Over 412 appearances he ‘banged’ in 23 goals, earning him hero status inside Kenilworth Road. Thank you, Pell!”
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