2:24PM BST 18 Aug 2011
Bullard, 32, has not featured for Hull this season after being placed on suspension following an incident on a pre-season trip to Slovenia.
He is contracted to the club until the end of the 2012-13 season.
A club statement said: "The club has given notice to terminate the contract of Jimmy Bullard.
"Mr Bullard has a right of appeal and it would be inappropriate to make any further comment at this time that might prejudice this process.
"The club will continue to focus on the development and performance of the squad going forward and is concentrated on efforts to deliver a positive season on and off the pitch for the Tigers."