The 36-year-old batter will return to India to prepare for the upcoming domestic season.
Leicestershire will lock horns with Northamptonshire on Tuesday, September 17, before facing Derbyshire in their last match this summer.
"I have absolutely loved my time with Leicestershire.
We played some fantastic cricket, and there a lot of promising signs for the team heading into next season," Rahane said in a statement.
"I have thoroughly enjoyed playing alongside my teammates and working with the coaches to improve my game. It was also a pleasure to meet the Leicestershire supporters and witness their passion for cricket. Everybody made me feel incredibly welcome, and I would love to return to the Club again in the future," Rahane added.