The full-back joined Wildcats from Salford Red Devils in June, on a deal until the end of the season, but played only five games due to injury and has now been released.
Locke, who played for New Zealand in the 2013 World Cup decider, suffered a ruptured pectoral muscle during his third appearance and was sidelined for six weeks before making a two game comeback last month.
He was suspended by the club following a road traffic incident in East Yorkshire the day after Wildcats’ home defeat by Widnes Vikings on September 12 and has not played since.
Wakefield chairman Michael Carter said: “He wouldn’t have played for us again anyway, because he picked up a shoulder injury against Widnes. We have reached a termination agreement and shaken hands and wished him all the best for the future.”
Locke is now attracting interest from Australian NRL giants Melbourne Storm.
Carter said he hopes to conclude the club’s investigation into half-back Tim Smith, who was suspended following the same incident, next week.
Smith is due in court on Wednesday and will not be considered for Saturday’s million pound match against Bradford Bulls at Belle Vue.
Australian prop Scott Anderson is also set to miss the all-ticket showdown, due to a knee ligament injury suffered against Sheffield Eagles last Sunday.