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He spent three seasons at Glanford Park after joining on a free transfer from Stockport County.
Morfaw leaves the club having never worn the claret and blue in a first-team game.
He signed a 12-month deal last summer after impressing on trial, but suffered an ankle injury in a pre-season game against Lincoln. He had a spell on loan at Lincoln, and also went on trial to League One side Bournemouth.
Horlock moved to Scunthorpe on a free transfer from Doncaster in January, but did not feature and ended the season on loan at Mansfield.
Andy Butler, Marcus Williams, Andrew Wright and Joe Wilcox have all been offered contract extensions.
Ian Baraclough, who is currently joint assistant manager along with Andy Crosby, has been offered a 12 month coaching contract with a pay-as-you-play option.