The 27-year-old striker hit ten goals last season as County won promotion from League Two with a Wembley play-off final win over Rochdale, but often struggled for fitness.
Proudlock, the former Wolves and Sheffield Wednesday front man, is the most high-profile exit from Edgeley Park as Gannon looks to clear some space in his squad.
Winger David Poole and left-sided midfielder Adam Griffin have also been released after failing to hold down regular first-team places, while defender Rob Clare has gone after missing the entire season with injury problems.
Gannon has also let go goalkeeper Chris Adamson, young midfielder Dan Ellis and youth-team player Chris Coward, along with Amari Morgan-Smith and Craig Flowers, two players who were awarded contracts last summer after County held a nationwide X-Factor-style competition to find talented young players.
Capable
The County boss is keen to build a squad capable of prospering in League One, and wants to build a side around players such as Tommy Rowe, Liam Dickinson and Anthony Pilkington, who all played key roles in the promotion battle.
Rowe, 19, last week signed a new two-year deal and Gannon is hopeful that sends out signals that the club is heading in the right direction.
The average age of the squad which beat Dale last week was just 21, and the manager believes that youth is the future.
Gannon said: "Our young players have all grown into becoming first-teamers.
"I just hope the club's ambition can match where some of these young lads like Tommy Rowe and Liam Dickinson are going to go because some of them are destined for great things."
County have offered new contracts to defenders Michael Rose and Jamie Smith, but are still waiting for an answer. They are also in talks with injury-jinxed Matty McNeil, who looks set to win another deal.
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I'm disappointed that both Proudlock & Clare have been released, yes both players have had their problems with one thing or another, but what do they say.... form is temporary, class is permanent. I'm not criticising JG because he has done a magnificent job and he does what he thinks is best for the club.
If Dicko goes to Blackpool for the reported £800K then we will be left with only McNeill up front. AP would have made a real impact in Div.1 and some lucky club will now pick him up for free. Just watch an Oldham or Huddersfield grab him and he will get 15+ goals for them.
At least the treatment table will be relieved! I've never seen a larger behind in 30+ years of football.
I'm a city fan but also follow county closely. A few of my mates are die hard county fans. I'd love to see some sort of set up between the clubs whereby we loan out some of our younger players or fringe players, Evans, Mee, Weiss, logan etc.... They could be given chances to play in county's first team, if they were good enough obviously. Decent 12 month loan agreements. It helps our players develop and also County acquire decent young talent without being held to ransom. In this crazy world of football it'd be nice to think two teams down the road from each other could look to work in tandem to help each other out. Without having to go to belgium, africa etc..to set up the same sort of thing. Thoughts anyone?