Josh Addo-Carr has scored 167 tries in 224 NRL appearances since debuting with the Wests Tigers in 2016.
His most prolific period came at Melbourne, where he scored 96 tries in 118 matches.
The former NSW Blues and Kangaroos winger is also an Indigenous All Star.
Parramatta have told the 31-year-old they will not re-sign him beyond 2027, News Corp reports.
The Eels will let him leave immediately if he secures a deal with another NRL club for next season.
Addo-Carr was expected to return to preseason training after the NRL cleared him to continue his career.
He had been investigated after failing a roadside drug test in September, but a secondary sample was negative.
Jason Ryles and the Eels are seeking a different direction, with James Schiller signed for 2027 as an option if Addo-Carr departs early.