Stefanovic, 34, joined from Fulham last term and has not played since a 2-2 draw with Preston last November. He was sent off once in his 12 appearances, in a defeat at Southampton, and received 2 yellow cards.
The Serbian international, who began his career at Red Star Belgrade, had been coming back to fitness but is now negotiating a pay-off with the club, who have paid his substantial wages for the duration of his injury, during which the club was relegated.
Stefanovic might have had a fight on his hands to get into the Norwich side in any case, with Gary Doherty and Michael Nelson set to start against Colchester on Saturday and Jens Berthel Askou, Michael Spillane, Dario Dumic and David Stephens waiting in the wings.
This observer suspects the financial woes at Portsmouth, for whom he played over 100 matches, might have seen him offered some sort of deal as a cheap alternative to their more saleable assets.
Stefanovic's departure, along with that of Matty Pattison back to South Africa, leaves just Wes Hoolahan of Glenn Roeder's signings remaining at the club.
I hope the club doesn't end up too much out of pocket for a player unlikely to be too fondly remembered.