Northern Irishman Jonny Steele and the Newcastle Jets have reached an agreement to terminate the midfielder's A-League contract.
The parting of the ways between the club and the player, who arrived from MLS outfit New York Red Bulls, is effective immediately.
Steele has not played for the Jets since being granted a leave of absence on 14 November.
The 28-year-old midfielder signed a two-season deal in July and was seeking a release from Newcastle to return to America to be with his family.
He played the opening two games of the season for the Jets before suffering a calf injury.
Steele's exit opens up a visa place on the Jets roster ahead of the A-League transfer window which opens on 6 January.