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delete the palyer from the squad
if you create him on an international team, then you want to add him to a club, you just have to go to the transfer section in the edit mode, choose the team you want him in, then choose add player. choose him from the nation he's in.
if you want to put him on free agent, select national team transfer and then replace him with someone else in the nation.. he will be available at free agent.
and for deleting players, you only can delete a player if it's a player you made from Create Player mode, you just have to press triangle and choose yes. but you can't delete a player who's originally add by konami though.
it depends on wther he's already in the NT or not. if he's already in the NT, then if you release him from the club, he will still be at the NT and won't appear at free agent. but if aren't in the NT, when you release him he will appear at free agent.