Sydney FC said the decision was mutually agreed upon following a series of phone calls on Monday between chief executive Tony Pignata and Culina's management.
Culina and Farina clashed on the training pitch in the lead-up to Sunday's win over Brisbane, with the former Socceroos coach saying after the round 20 victory that Culina was unlikely to play for the club again.
The Sky Blues had given Culina the chance to again play top flight football after bravely recovering from a long-term knee injury.
But former Socceroo Culina's career is now in limbo.
"I would like to thank Sydney FC for assisting me with my rehabilitation and my return to football," Culina said in a statement.
"The circumstances surrounding my departure are unfortunate but I feel fit and strong and I am determined to continue my playing career."
Culina made eight appearances for the Sky Blues, scoring two goals.
"We would like to wish Jason the best of luck with the rest of his football career," Pignata said.