Asiata signed with the Bulldogs for the 2022 season after a stint with the Brisbane Broncos, but was handed a termination notice last month with the club requiring all players to be fully vaccinated against Covid-19.
The NRL does not have a mandate in place for players to be fully vaccinated unlike the AFL, but Canterbury have been firm on their stance as an organisation.
"The Bulldogs and John Asiata have agreed to part ways by mutual consent," the club said in a statement.
"Asiata, signed with the club this season, but had yet to train with the squad.