The ranking is used to determine which Major League Soccer club has priority to acquire a U.S. national team player who signs with the MLS after playing abroad or a former MLS player who returns to the league after having gone to a club abroad for a transfer fee.
Sarvas' departure clears a spot in the Galaxy's midfield for Liverpool captain Steven Gerrard, one of the leading players in the English Premier League, who signed with the Galaxy earlier this month.
Gerrard, 34, plans to join the team in July after finishing the EPL season. The Galaxy last season won a record fifth MLS championship.
Coincidentally, Gerrard also would be able to keep wearing the number 8 he has at Liverpool, because that was Sarvas' number.
"We thank Marcelo for all of his contributions to our team over the past three seasons," Galaxy Coach Bruce Arena said in a statement. "We wish Marcelo the best of luck in Colorado."
Separately, the Galaxy chose forward Ignacio Maganto, 23, in the first round of the MLS SuperDraft in Philadelphia. The Galaxy had the 21st pick in the draft.
A native of Madrid, Maganto spent four years playing at Iona College in New Rochelle, N.Y., where he scored 27 goals, including 11 goals in his senior year.