Lachlan Lewis

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 has been stood down by the club since last Friday when news broke of the alleged incident.

The halfback, who was told he would be released by the Dogs earlier this week, is now facing sanction.

According to Channel 9 reporter Danny Weidler, Lewis will have to apply to have any future contract registered with the NRL.

He is also facing a fine in the region of $10,000.

Earlier in the week Weidler revealed that Lewis donned a mask and put a hood over his head as he attempted to steal the speaker.