Addo-Carr's fate was sealed on Thursday when the Australian Test winger was forced to front the Bulldogs board of directors and explain why he shouldn't have his contract torn up.
It came after the 29-year-old was pulled over by NSW Police in September, a week out from the club's first finals games in eight years.
The 15-time NSW State of Origin representative failed the roadside test and a secondary sample returned the same reading.
Addo-Carr has maintained he had not knowingly ingested recreational drugs and had held faint hope he would be given a reprieve by Canterbury powerbrokers.
But on Thursday Canterbury's board opted to terminate his contract.
"Josh has been a significant part of our club over the past three seasons," said Bulldogs chairman Adam Druissi.
"During this time, he has provided many memorable moments for our members and fans.
"We understand Josh's popularity with our passionate supporter base, and we share their disappointment that his time with the club has ended this way.
"However, this season has demonstrated the importance of building a culture based on clear standards and values.
"While the NRL Integrity Unit has completed its investigation and imposed a four-match suspension, the club views the combination of the failed drug test and subsequent lack of transparency as serious breaches of Josh's contractual obligations and our club's standards."
In axing Addo-Carr, Canterbury will clear close to $500,000 from their salary cap at a time when the NRL's transfer market is set to kick into overdrive.
Addo-Carr will likely have several suitors but may not command the top dollar he earned when he was lured to Belmore from Melbourne in 2021.
The winger has been given permission to negotiate with rivals since news of his second positive reading came to light but has been unable to secure a move elsewhere.
Addo-Carr will have to serve the remaining three games of his four-game ban in the 2025 season.
His NRL suspension was also accompanied by a $15,000 fine.
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