Knott will leave the Bantams having made 79 appearances in total for Phil Parkinson's men over the course of two seasons.
The 23 year-old scored eight goals for City during that period, arguably his most memorable strike coming in the club's Capital One Cup victory over near neighbours Leeds United at Valley Parade back in August 2014.
Speaking on social media about his departure from the Bantams, Knott said: "I would like to thank everyone at Bradford City.
"The fans were brilliant with me from day one and I can't thank them enough.
"Thank you to the staff and players as well, I have met some really good people here.
"I'd like to think I gave 100% every time I wore the shirt but I don't mind being remembered for THAT goal against Leeds!
"Thanks for all of the great memories."
Bantams boss Phil Parkinson is scheduled to confirm his complete released list early next week.