The 28-year-old, who signed a short term deal for the club back in September had been in discussions about a new contract with the Hatters.
However it appears those talks with boss Graeme Jones did not reach a successful conclusion, as LuaLua tweeted: "Well after an unsuccessful meeting today me and Luton FC will be going our separate ways much to my dissappointment!
"Thanks to The boys for making me part of the family since joining the club. All the best for this season @LutonTown.
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"I also want to take this opportunity to thank you for all your support last season.
"All the best for this season. Good luck for the future! Kaz."
In response, the club's official Twitter account said: "We can confirm that @kazenga30 has today declined a contract offer to remain at Kenilworth Road.
"All at LTFC would like to thank Kaz immensely for his valuable contribution to last season’s success and wish him the very best in his future career."
LuaLua had joined club under former manager Nathan Jones, but it was when Mick Harford became interim boss that he really shone with some sparkling displays alongside James Collins in attack, as Town won the League One title.
In total, he played 28 times, scoring three goals, but will now be searching for the seventh club of his career.