The Premier League side are working to reshape their squad after they hire a new manager.
With head coach Roberto De Zerbi also departing, the summer could see a lot of change at the seaside club.
Adam Lallana, Steven Alzate, Jack Hinchy, Leigh Kavanagh, Brody Peart, Tommy Reid and Bailey Smith are all leaving.
Head of academy Ian Buckman said: “Obviously there is good news for those being given extended terms and disappointment for the players not offered new contracts.
"We will continue to offer our support to the five and help them achieve their next steps in the coming weeks and months. We wish them well for the future.
“For those offered new terms, their aim will be to continue their development next season with the ambition of making our first-team squad.”
Technical director David Weir added: “We would like to thank Steven for his efforts during his time with the club and wish him all the very best for the future.”