Reid is probably still way above Midtjylland I think, it's just that his massive wages have been a barrier to the types of clubs who would be at his level. If West Ham pay him out and he becomes a free agent I'd have thought he'd pick something up at a higher level than that relatively quickly.
Doesn’t he have to be released prior to the transfer window closing to sign elsewhere?
This suggests a kind of retirement or transition into another role, or that the negotiations will take until the next window at least!
I don't think so, once released he is a free agent and can sign for anyone he wants at anytime (I think). The window is a "transfer window" not a signing window. (my take on it)