The decision comes two weeks after Lewis was stood down pending the outcome of an investigation into an alleged incident.
"After issuing Lachlan a breach notice and following due process regarding his response, the club has decided to part ways with Lachlan, effective immediately," Bulldogs CEO Aaron Warburton said in a statement.
"The Club is committed to supporting Lachlan during this time and we wish him all the best for the future."
Lewis played 43 matches for the Bulldogs across four seasons, scoring six tries and kicking one field goal.
He was off contract at the end of the 2021 season.
The Bulldogs recently released Adam Elliott from the final two years of his contract after an off-field incident, while also confirming Lewis would be among 10 players not offered a contract for next season, along with the likes of former representative players Will Hopoate and Dylan Napa.