According to a source at Chippa, Sangweni has been given his clearance, having only returned to the club in July 2018 after failing to get regular game-time at Orlando Pirates.
The 29-year-old has made 14 appearances in all competitions this season.
"The club has parted ways with Thamsanqa Sangweni," says the informant.
"Chippa United is expected to make the announcement soon."
United recently replaced their head coach Joel Masutha with Clinton Larsen and also severed ties with experienced centre-backs James Okwuosa and Thabo Nthethe, as well as midfielder Jabulani Shongwe.
The relegation-threatened outfit have signed defensive-minded quartet Bangaly Keita, Donashano Malama, Gladwin Shitolo and Phetso Maphanga in their bid for survival.