The 25-year-old had been in discussions regarding his future - but will now depart as the Pilgrims continue their transition to full-time football.
United chairman David Newton said: “It has been mutually agreed that Keaton will leave the club. He played a key part in the promotion to the National League, scoring a hugely important goal in the promotion final against Brackley.
“He was then a very influential player in helping keep the club in the National League this season. He handled these contract negotiations with the same professionalism that he portrayed during his whole period with the club, and he leaves with our very best wishes.”