Josh Addo-Carr is due back at Parramatta's pre-season training next week, while his management searches for another NRL club.
The Eels will not extend the former Test winger's contract beyond 2027, but will let him leave sooner or stay until the deal expires.
The decision follows a roadside random drug test in October, after which the NRL integrity unit cleared the 31-year-old to return.
His B sample tested negative earlier this month, giving the former NSW State of Origin and Kangaroos star an unexpected reprieve.
"The Parramatta Eels would like to provide an update regarding Josh Addo-Carr following a driving incident in September," the club said in a Thursday statement.
The club said: "After reviewing all relevant information, including the negative result of the B sample, the club has cleared Josh in relation to the issues raised following the incident."
It added: "The NRL has also confirmed it will not be taking any further action, and the club now considers the matter closed."