Chairman Pete Winkelman said: "I'd like to thank all of the players, especially Gareth Edds after four years of service and some unforgettable moments."
Edds played just one more game after undergoing ankle surgery in November.
The 27-year-old Australian defender, who found his feet in Milton Keynes after spells at Nottingham Forest, Swindon Town and Bradford City, is the most long-serving of the five players let go.