Phala’s contract with SuperSport is set to end in June and the parties had been locked in talks over a new deal.
But is has since emerged that the 32-year-old has already signed a pre-contract with another team, believed to be Pirates.
Now a source close to SuperSport says Matsatsantsa have decided to release Phala during the January transfer window.
“SuperSport were keen to retain Phala, but after learning that he had signed a pre-contract with another club, they decided to stop the talks. Coach (Kaitano) Tembo is not willing to continue to work with a player that has signed a contract somewhere else, so he has recommended that he be released from his contract,” the source told Phakaaathi.
Phala has also been linked with a move to Bidvest Wits.