Southend have given Jemal Johnson 14 days notice of their intention to terminate the winger`s contract at Roots Hall.
Johnson, a free summer signing on a 12-month deal, was suspended by the League Two club for two weeks at the end of November pending a full review into his conduct following his October arrest by police outside a nightclub in Ilford.
The American, 26, was not considered for selection and did not take part in training during that time, with an internal disciplinary hearing taking place last Wednesday.
A decision has now been taken that Johnson has no future at the Essex club, subject to an appeal.
A statement on Southend`s official website read: "Southend United can confirm it has provided Jemal Johnson with 14 days notice of the football club`s intention to terminate his contract.
"The decision follow an internal investigation and disciplinary hearing into the conduct of the player following his arrest at a nightclub in late October. Mr Johnson has 14 days in which to appeal the decision. No further comment will be made."