The popular 27-year-old midfielder has recovered from an ankle injury after having surgery in the summer.
But GloucestershireLive have reported that Hereford have told him that they have no money left in their budget to keep him at Edgar Street.
Richards has since tweeted that 'it was an absolute pleasure' to play for the club.
@HerefordFC it’s been an absolute pleasure!!! Thanks for all the memories! All the best for the future... pic.twitter.com/8DleX3MJRL— Eliot Richards 🏴 (@Eliot_Richards) August 9, 2019
It is understood that some National League South clubs are now interested in signing Richards.