Merrett played 56 games for the Bombers after making his debut in round 23, 2012.
“On behalf of the Essendon Football Club I would like to thank Jackson for his commitment to the club,” Essendon coach John Worsfold told essendonfc.com.au.
“The attitude and leadership he has shown both on and off the field is truly commendable. He has outstanding character and has helped to mentor and support the younger players on our list.
“Jackson is a highly respected player of this club and we wish Jackson all the best with his future endeavours.”
Merrett played just two games in 2018, and didn’t feature at all during the 207 season.