It's unclear at this stage which club the fullback has signed on with, however, reports have suggested he is set to head to the Warrington Wolves, who have also signed Josh McGuire and Paul Vaughan in recent times.
The trio were all part of the 2021 St George Illawarra Dragons' side, before Dufty and Vaughan - both unwanted at the joint venture - linked up with the Bulldogs on one-year deals this season.
Dufty started in the number one jumper under the coaching of Trent Barrett for the Belmore-based outfit this year, but it didn't last, ultimately being dropped to reserve grade in recent times.
The club confirmed his release, effective immediately, in a short statement.
"We would like to thank Matt for his service and commitment to the club since he joined us at Belmore last November.
"The Bulldogs wish Matt and his family all the best in the future."
Dufty, who has played 94 games during his time in the NRL, played 12 for the Bulldogs this season following his 82 games for the Dragons between 2017 and 2021.
The 12 games at Canterbury saw Dufty often come under fire for his work both on and off the ball, despite providing six try assists.
His last game for the Bulldogs was in a Round 12 loss to his old club at Belmore, but it was tipped he would come back into the side for this weekend following Jake Averillo's positive coronavirus test.
Despite that, the Bulldogs will now be forced to go in another direction, with Dufty moving on from the club effective immediately.