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."
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.
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