Newcastle Jets confirmed that it has reached a mutual agreement to release Nikolai Topor-Stanley from his contract.
The 27-year-old is expected to be among the first group of players announced by the new western Sydney club, although Melbourne Victory has also been linked with the one-time Socceroos defender.
"He is a good footballer and this is a wonderful opportunity for Nikolai to continue his career at another club," Jets CEO Robbie Middleby said.
"This opportunity gives him longevity in the game and as a Club we couldn't stand in his way.
"We would like to thank Nikolai for his contribution to the Jets and wish him well in the future."
Topor-Stanley informed his Jets team-mates at training on Friday morning with his release effective immediately.
Newcastle Jets has strengthened its goalkeeping ranks with the signing of 19-year-old John Solari to a one-year deal.