Bosschaart, 34, impressed in his first season with the Sky Blues but an Achilles tendon injuries saw him miss most of his second season.
 
He appeared set for a comeback in this campaign and played on Sydney's tour of Italy, only to be ruled out indefinitely on the eve of the season opener with yet another ankle injury.
 
Bosschaart joined a lengthy list of injured stars for the Sydney side with the season only just begun, and feelgood factor of their opening win against Newcastle Jets wiped out by last weekend's dismal 4-0 thrashing by Brisbane Roar.
 
Now the club have taken the axe to the fans' favourite, and hope to still find the cash under the salary cap to bring in a quality foreigner to replace him, despite paying out the Dutchman's deal for the rest of the year.
 
"We still do have a little bit of salary cap space left and this certainly gives us some room to move if want a good visa player," coach Frank Farina told Fairfax Media.
 
"This is not the way we would have liked to have dealt with it, mostly because we were really hopeful that he would get back out there.
 
"Pascal has done everything right and has tried to get himself back to full fitness, but he's obviously still injured and it's been a tough road after doing his Achilles twice.
 
"We're in a situation where we need to have players who are available and ready. We need all hands on deck."
 
He added: I've been looking at different ways of how we can boost the squad and freeing up a visa place - either right now or further in the season - gives us flexibility.
 
"We'll honour Pascal's contract, but this is a business and sometimes you need to make some difficult decisions. This is one of those."
 
Bosschaart has setled into Sydney life since joining the club in 2011, bringing his family over and enjoying life on the North Shore, frequently tweeting pics of himself on Balmoral Beach.
 
As news broke of his exit from the club, he was retweeting messages from fans thanking him for his time in the city.
 
"Of course I'm disappointed," he told Fairfax Media. "I have loved my time at Sydney, I love the fans, my teammates and this city.
 
"I had worked so hard to get all of my fitness back in the pre-season and I know I'm still capable of playing.
 
He added: "We all really like it here. I feel like I've given a lot for Sydney FC, even when I was injured I was doing as much as I could for the club off the field.
 
"But this is the life of the professional footballer. If the club wants to pay out my contract in full, I don't have a choice. As Australians say, 'It is what it is'."