Phala, 32, has been frozen out at the Tshwane giants and at one stage was ordered to train with the club's MultiChoice Diski Challenge team, but when the reserve league ended he stopped going to the club.
The former Bafana Bafana winger's contract with Matsatsantsa was set to expire in June this year, and it will not be renewed. His representatives, QTSports, confirmed that he is no longer with the club.
"We are pleased to announce that SuperSport United Football Club and Mr Thuso Phala have conducted an amicable for the departure of Thuso from the club," the statement read.
A source close to the player tells snl24.com/kickoff Phala is already in talks with another club.
"Thuso is not training with any club at the moment," the source says.
"You must remember that Stan Matthews made it clear [in the media] that they no longer want him. There is a club he is speaking to, but nothing will be disclosed for now until the deal is sorted.
"Some of the teams lose interest once they read about themselves in the media being interested in a player, so Phala's camp has decided to keep this under wraps until they are sure, then they will start telling people."
Phala made more than 160 starts for Matsatsantsa since joining the club in 2013 and scored 28 goals in all competitions.