After training with the Fiji side with the hope of playing in the Olympics, Hayne has written to fans to say he "wasn't ready yet".
In a candid Facebook post, Hayne wrote that he had pushed himself "above and beyond" in an effort to make the team, but it was not enough.
Last Friday I had a meeting with Ben to discuss my future with the team and I was informed that my time has ended.
As much as I would have loved to go to Rio, I too knew I wasn't ready yet.
During my time with the team, I pushed my body above and beyond. I used all my experience as a professional athlete and have tried everyday and in every way possible to make this team and make it better but unfortunately, time has been against me.
I've loved every minute of training with the Fiji Rugby 7's.
Not only are they back to back world champions but they are a bunch of guys who have welcomed me into the team as one of their own family.
It was hard to comprehend and understand at first why I came here? Why God put me here, but deep down I knew there was a reason and a purpose.
God takes you places not so you can achieve what you set out for, but to play a part and help something greater than yourself.
This has been an amazing journey for me and a truly humbling experience.
I have learnt so much and will never forget my time with this team.
He said he will remain with the team until the middle of the week before returning to Sydney.
On future plans, he said he would work out his next steps once back in Australia.
"I'll enjoy watching from afar and wish the team all the best of luck on their road to Rio," he said.
Update your news preferences and get the latest news delivered to your inbox.