Wales back-row forward Andy Powell is to leave the club by mutual consent.
Powell, who signed on a one-year deal in July 2010, had been suspended following his involvement in a brawl in a London bar last month.
And following a review of the incident the club has decided to part ways with the 29-year-old.
"[The club and player] agree that the conclusion reached is in their respective best interests for the future," a club statement read.
Powell was suspended indefinitely on 19 April following an incident at the Walkabout pub in Shepherd's Bush, west London.
Initially, both Powell and ex-England prop Tim Payne, 32, were banned pending an investigation by the High Wycombe-based club into the events at the London pub.
Two days later, Wasps lifted their suspension of Payne, focusing their attentions on Powell.
Commenting on that investigation, Wasps' statement continued: "This announcement comes following a thorough and detailed review, between the player and the club, of all of the evidence arising from the incident for which Andy was initially suspended.
"This included a review of CCTV footage of the incident and statements from those witnesses present throughout.
"Both parties are satisfied that this matter has been dealt with in a proper, fair and appropriate manner and agree that the conclusion reached is in their respective best interests for the future.
"Both parties have also agreed that there will be no further comment from either side and the club considers the matter now closed."
Powell, who joined Wasps after being released by Cardiff Blues in the summer, pleaded guilty to driving a golf buggy while unfit through drink in March 2010. He was banned from driving for 15 months and fined £1,000 as a result.
Capped 17 times by Wales, he made 21 appearances for Wasps this season, scoring one try.