After discussions between the Club and Martin, it was determined that it would be best for both parties to go their separate ways.
The 31-year-old has been a great servant for eight-and-a-half years during two spells with the Dons, making 332 appearances and playing a big part in the Club’s promotion to the Sky Bet Championship.
Chairman Pete Winkelman said: “Dave has played a massive part in our journey as a Football Club and we will be forever grateful for that.
“He’s also been involved in some amazing highlights over the years – ones which will live long in the memory of our supporters. I wish him all the best in the future.”
Martin said: “With great sadness, my time with Milton Keynes Dons will come to an end when this season finishes.
“It has been a great eight-and-a-half years but now is the time to pursue a new challenge.
“I would like to thank the Club, the fans and my team-mates for the fantastic support I have always received, while I reserve a special thank you to my goalkeeping coach Paul Heald and our outstanding chairman – Pete Winkelman.
“The highlights for me were the first ever meeting between us and AFC Wimbledon, beating Manchester United and gaining promotion to the Sky Bet Championship.”
He added: “I thank the fans that have supported me through all the good and bad times we've seen at the Club. Milton Keynes will always be a special place and Club to me.
“I wish all my friends at the Club all the very best for the future and, I am proud to say, I've been part of a special community and Club.
“We have our last home game of the season on Saturday and it will be my chance to say farewell to our amazing fans.”
Everyone at the Club would like to thank Dave for his immense contribution and wish him all the best in the future.