"I had limited playing time and was stressed about it. I guess this is the right time to make a new start at another place," said Bando, who hopes to play with another club.
The 30-year-old did not start this season and was substituted in 20 games, scoring two goals.
Bando had a stint with Osaka in 1998-1999 before moving on to play for Consadole Sapporo in 2000-2001 and for Vissel Kobe in 2002-2005. He returned to Osaka in 2006.
He won his first national team call-up under former Japan coach Ivica Osim in 2006.