According to a Seven Network report the 2018 AFL Rising Star winner - who served a ban for betting on matches he was involved in - has lost his passion for the game.
He was contracted for the 2025 season but is expected to step away immediately.
The forward/midfielder has spent the past four seasons at North Melbourne after starting his career at Collingwood.
Stephenson was a highly-rated junior footballer who was drafted to the Magpies with pick No.6 in the 2017 AFL draft.
The speedster kicked 38 goals in his first season, winning the Rising Star as the Magpies reached a grand final.
From there, Stephenson was expected to kick on and become a genuine star.
But things went awry in 2019, when his season was ended early by a 10-game suspension for placing bets on Collingwood games with which he was involved.
Stephenson was traded to North Melbourne at the end of the 2020 season amid Collingwood's attempt to clear salary cap space and ended with 76 goals in 54 games for the Magpies.
He joined the Kangaroos on a five-year deal but had a patchy run at his second club.
In 2021, Stephenson broke his hip after he fell off his mountain bike in his backyard, having attempted to perform a trick after drinking at home with housemates.
He ultimately played 68 games for North, kicking 54 goals - including eight majors in 12 games this year.
AAP has contacted North Melbourne for comment.
12°C