Hayne is now defending a separate a civil case brought against him by a woman who claims she was raped while he was playing for the San Francisco 49ers in the USA in 2015.
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The Eels had been hopeful at least one other player could be picked up by another club to fit Hayne into next year's salary cap.
The pair had initially communicated via social media, but the woman alleges Hayne then sexually assaulted her, and bit her, causing scarring and injuries which required hospital treatment.
Welfare officers from the Eels are understood to have been in contact with Hayne about the allegations which have rattled him.
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Hayne was questioned at the Ryde Police Station on Monday afternoon and later charged with "aggravated sexual assault inflict actual bodily harm on victim". 'The Child Abuse and Sex Crimes Squad is comprised of detectives who are specially trained to investigate matters against children and adults, including sexual assault, serious physical abuse, and extreme cases of neglect'.
He is one of the biggest and now most controversial figures in rugby league over the past decade.
He has played 214 NRL games since his 2006 debut, 191 with the Eels.
He also represented Fiji in rugby union sevens and attempted a career in the National Football League in 2014, but experienced only fleeting success during a tough first season with the San Francisco 49ers. They are due to be heard during a five-day civil court trial in 2020. Hayne has always strongly denied MV's rape claim, saying they "willingly engaged in sexual interaction that did not include sexual intercourse". "No further information is available at this time".
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Hayne announced his retirement from the 49ers in March 2016.