The 30‑year‑old, known as a fiercely competitive player, joined Arsenal in 2015 and went on to make 305 appearances, scoring 37 goals. She helped the club win a Women's Super League title, the Champions League, the FIFA Champions Cup, one FA Cup and three League Cups.
McCabe's future had been the subject of speculation in recent months, with reports that Manchester City were pursuing the defender on a free transfer. Arsenal had confirmed on Monday that forward Beth Mead will also depart the club at the end of the season.
Arsenal travel to Liverpool to play their WSL season finale on Saturday.