Hlatshwayo, who was a headline signing from Bidvest Wits, saw only 11 matches in all competitions this season.
Zungu, who enjoys a healthy relationship with Pirates chairman Irvin Khoza could not say if they were favourites to land the former Bafana Bafana captain.
"We've already signed our six new players, we are short with two players we are still busy negotiating with, I cannot mention them, but I can assure you Hlatshwayo is not one of them," Zungu tells KickOff.
"Hlatshwayo is not on the list of players we are negotiating with, and yes he's a very good player,
"A player I respect and the way he is so disciplined sets a good example even to other players.
"Any team will benefit a lot by signing him, but then again we haven't spoken to Pirates about him.
"Tyson being released is news to us, but something we definitely need to put our glasses on for.
"But for now we haven't spoken to him, his name has never featured in my discussions with the coach."
Usuthu has already announced Gabadinho Mhango, Veluyeke Zulu, Dumisani Zuma, Thando Mukumela, Rican Hanamuub, and Augustine Kwem as new signings.