The Brazilian star spent last season with the 2006 A-League champions though injuries saw him restricted to 11 starts and 15 substitute appearances.
"It's done and dusted and there are no longer any plans for him to play for us anymore," Sydney coach John Kosmina said according to the Daily Telegraph.
"Obviously the marquee position wasn't available so we put an offer to him that would've put him inside the cap, but we couldn't come to terms and it's time to move on.
"We tried to keep him, we put a proposal to him that was not unattractive but it wasn't marquee status financially.
