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A popular figure at the Club, Gunnar joined the Blues from Blackburn Rovers in 2009. His only appearance for the first team came in April 2010 when he came on as a 76th-minute substitute for Shay Given away to Arsenal.
His chances since then have been limited and the last two seasons have been hampered by injury, though he is fully fit again now.
With Joe Hart, Costel Pantilimon, Richard Wright and Eirik Holmen Johansen all competing for places, the Blues have a competitive goalkeeping fraternity and Gunnar believes he will have more chances to further his carer elsewhere.
“I’ve enjoyed my time with City but it’s time for a new challenge, now,” said Gunnar. “I’m grateful to the club for looking after me so well during my time here and it’s been a privilege to play and represent Manchester City.
“Being able to learn and train alongside goalkeepers like Joe Hart and Shay Given has been a pleasure and helped me become a better goalkeeper and I intend to keep in touch with the many friends I’ve made here over the past three years.”
Capped 11 times by the Faroe Islands, Gunnar will hope to secure a new club either in England or Scandinavia. He is also looking to develop the Gunnar Nielsen football school back in the Faroes this summer with a couple of youngsters he’s coached attracting interest from major clubs in Europe.
Everyone at City wishes Gunnar the very best in his future career.