Backs Jason Harris, Ian Porter, Fionn Carr and Api Pewhairangi will all exit the Sportsground come summer.
Following them out the door will be forwards Jason Harris-Wright, Aly Muldowney and George Naoupu.
Carr, a former Ireland Under-21, had struggled for fitness and been unable to carve out a regular starting slot.
Experienced utility back Naoupu has spent spent six years with the Westerners in two spells, making more than 100 appearances for the province.
And head coach Lam, whose side were knocked off the top spot of the Guinness PRO12 table at the weekend, wants the players - despite their departures - to end their Connacht careers on a high.
He said: "It's always a difficult time of year when we have to make decisions about the future makeup of the squad.
"Within professional rugby, every team sees changes in their squad from one season to the next.
"What we have achieved so far this season, and what remains to be achieved, has come on the back of the hard work of every single player in this current squad.
"I know everyone is committed and excited to finish the 2015/16 season together on a massive high.
"We recognise and value the contribution these men have made to Connacht Rugby and we will celebrate it together with our supporters at the end of the season."
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