The club released a statement on Tuesday announcing the release, which is effective immediately.
“The Knights wish Danny, fiancé Kimberly and daughter Nylah all the best for the future,” the statement said.
Levi was targeted by Manly to fill the shoes of Manase Fainu, who has been sidelined by the NRL under the no-fault stand down policy in relation to an alleged stabbing in October. Fainu is also recovering from a severe shoulder injury, which has added more uncertainty to his future.
As a result of surgery for the injury, Fainu was excused from his latest court date on December 16. He is facing multiple charges in relation to the incident at a Mormon church dance, where police allege Fainu attacked a 24-year-old man during a brawl with a 10cm knife. The victim was left with a punctured lung.
The 21-year-old has pleaded not guilty to charges of wounding a person with intent to cause grievous bodily harm, affray and recklessly causing grievous bodily harm in company, and is not likely to face trial until the middle of the year.
He has also been excused from his next court date on February 3.