Koscielny made 11 appearances in the first half of the 2021/2022 season for Bordeaux but was banished from the first team at the turn of the year and has not played for the club since.
The 36-year-old has also been at odds with the club's Ultras, who have accused him of racist behaviour; an assertion he has denied.
Koscielny joined Bordeaux from Arsenal in the summer of 2019 after similarly falling out with the Gunners after nine years of service in North London which brought three FA Cup triumphs.
Koscielny won 51 caps for the France national team, scoring one goal.
Bordeaux are bottom of the Ligue 1 table with nine rounds of matches left to play.
A press release read: ‘Following the article published in the Sud Ouest newspaper on March 22, 2022, Laurent Koscielny was surprised, shocked but also saddened by the remarks made by one of the representatives of the Ultramarines 87 Group against him, which the press is now echoing.
‘Without there being any ambiguity, he strongly disputes these accusations which have seriously injured him and which necessarily have repercussions on his family and those around him.
'As a reminder, Laurent Koscielny has not been part of the professional staff of the club since the end of January 2022, he recalls that he is still an employee of the Girondins de Bordeaux.
‘On this point, Laurent Koscielny intends to specify that he has decided to hang up his boots when he would have preferred to help the club on the ground.
'Aware that the club was in difficulty, he accepted the proposal made to occupy a new function and to release his salary as proof of the concern he has for the best interests of the club. As such, he would like to thank the club for the mark of confidence shown in him by entrusting him with this position.’
