LONDON (Reuters) - West Ham United have reached agreement with midfielder Fredrik Ljungberg to terminate his contract with immediate effect, the Premier League club said on Wednesday.

The 31-year-old, who captained Sweden at Euro 2008, was assessing his options, including whether to continue playing, the east London club said on their website (www.whufc.com).

"I gave my all at West Ham and enjoyed my time there but the decision is the best for the both of us. Now I will take my time to consider my football future," said Ljungberg.

He announced his international retirement in June after Sweden exited Euro 2008 at the group stage following a disappointing campaign. Ljungberg joined West Ham last year after nine successful years with London rivals Arsenal.

West Ham said leading clubs in Europe, the United States and Asia were interested in Ljungberg, adding: "The decision to part company has been taken jointly and has no bearing on Ljungberg's fitness, which he proved at Euro 2008."

West Ham chief executive Scott Duxbury said: "We respect Freddie Ljungberg's position and are pleased we could reach agreement and wish him all the best in the future. This deal is mutually acceptable to both parties."

(Writing by Ken Ferris; Editing by Clare Fallon)