Agyemang joined City in June last year on a one-year loan deal with an option to sign him on a permanent deal until 2024.
However, the 28-year-old failed to make an impact in South African football and his stay in Cape Town has been cut short to only six months.
Citizens spokesperson Julian Bailey has confirmed the latest development.
"He has returned to Ghana," Bailey tells snl24.com/kickoff. "He was on loan until the end of the season but the club has decided to cut it short."
City have replaced Agyemang with the signing Zambian striker Justin Shonga from Tshakhuma Tsha Madzivhandila.
Charles Zulu - Zanaco to Cape Town City
Aubrey Ngoma - Sundowns to Cape Town City (loan)
Bombay Reid - Steenberg to Cape Town City
Terrence Mashego - TS Galaxy to Cape Town City
Sanele Gaxa - AmaZulu to Cape Town City
Taahir Goedeman - MDC academy graduate
Prince Opoku Agyemang - Medeama to Cape Town City
Fagrie Lakay - Joined after impressing on loan from Bidvest Wits
Justin Shonga - TTM to Cape Town City