Opening batsman Pardoe, 23, has made 2,291 runs at an average of 24.63 in 56 first-class matches since making his debut in 2011, but lost his place to Richard Oliver this season.
"I would like to thank the club for the past 10 years from a youngster on the Academy to the present day," Pardoe told reporters.
"It was fantastic growing up under the guidance of Damian D'Oliveira and playing first-class cricket for Worcestershire."
The county have also opted to release 20-year-old fast bowler Graeme Cessford, who was recruited in November 2012 as part of an RAF Elite Athlete Programme.
Worcestershire have two Championship matches left this summer, the first of which starts on Tuesday at home to Surrey at New Road.