The Comoros international is in the process of recovering from a knee injury sustained in the early stages of the famous FA Cup win over Liverpool, but both parties have agreed to terminate his contract.
M'Chagama, 22, joined the Lancashire outfit in the spring of 2012 after impressing on trial, and was handed a new one-year deal for the current campaign.
But the former Troyes AC player saw his season brought to a premature end against Liverpool in what turned out to be his last appearance at Boundary Park.
The Latics have vowed to support M'Chagama through the completion of his rehabilitation as he searches for a new club.
- Sports & Recreation