Davila looked set to see out his career with the Bulls when he penned a two-year contract extension with the club earlier this year.
But when the 33-year-old was arrested in May - over his alleged involvement in a scheme whereby Macarthur players were to deliberately receive yellow cards - his future was immediately clouded.
The Bulls announced on Monday that the midfielder's contract had been terminated, claiming in a two-line statement that the decision to part ways was "mutual".
The club and Ulises Davila have agreed on a mutual termination of his contract going forward.— Macarthur FC (@mfcbulls) The club will not be making any further comment at this stage. pic.twitter.com/wazXknKa2SJune 24, 2024
Macarthur's decision to split with the Mexican national came on the same day Davila fronted court for the first time since the allegations emerged.
Police claim Davila, a former winner of the league's Johnny Warren Medal, was the conduit between Macarthur players and a South American group leading the bet-fixing scheme.
Davila is yet to enter a plea.
Two other Macarthur players have been arrested and charged in relation to the claims.
New Zealand international Clayton Lewis remains contracted to the Bulls and is due to front court later this week.
Midfielder Kearyn Baccus, who was released in an off-season clean-out, appeared in court last month.
