Mat Rogers will be free to play rugby league following the decision by both the Australian and New South Wales Rugby Unions to cancel the third and final year of his contract.
Originally, Rogers planned on participating in next year's World Cup before joining the NRL's newest club, the Gold Coast Titans, in 2008.
Now, Rogers will almost certainly line up for the Titans next season.
"First and foremost, this isn't a rugby versus league decision; it's about my family, my life, my future," Rogers said in a statement.
"I have important personal reasons for requesting a release from the Waratahs and Wallabies and although most of my life has been played out in the media I do ask for the next period of time that you respect my family's privacy.
"Playing for NSW and Australia was always a dream of mine," he continued. "And to have achieved that made me immensely proud. Wearing the Wallaby jersey 45 times is something that I'll cherish always.
"Make no mistake, this is a sad day for me. I'm walking away from a lot of friends that I've made over the past five years but they certainly won't be forgotten.
"Rugby has given me some of the best times of my life, but now I need to take a new direction."
Rogers revealed he lacked the motivation and the passion to continue representing the Wallabies and the Waratahs, and that it was the right time to leave.
"Many will speculate about those reasons and I can't control that, but know that I value the jersey too much to play in it and not be 100% committed," he added.
"It would serve as an injustice to my team-mates, coaching staff and more importantly the people who themselves have dreamt of playing at this level and never had the chance."