Striker Cassano was reported to have taken legal action against Parma due to unpaid wages last Friday.
The Serie A strugglers denied that was the case, but confirmed that the Italy international had requested money owed to him.
Parma then revealed on Monday that Cassano's time at the club has come to an end.
The 32-year-old former Real Madrid frontman spent last season on loan at Parma from Inter, before completing a permanent move at the start of this season.
Cassano dropped to the bench for Sunday's clash with fellow strugglers Cesena, which Parma lost 2-1 to drop back to the bottom of the table.
He scored five goals in 19 Serie A appearances for Roberto Donadoni's side this season.
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