ADELAIDE has officially cut ties with Tyson Stengle after the troubled forward refused an offer to stay on the club's list.

Stengle and the Crows have struck a confidential settlement in which the 22-year-old, who was contracted until the end of next season, departs the club after three recent off-field indiscretions.

Adelaide wanted to keep Stengle on its AFL list until the end of his contract but permit the goalsneak to only play in state league ranks this season.

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"We put forward a proposal that he would remain on our list for the balance of his contract," Adelaide's head of football Adam Kelly told reporters on Wednesday.

"But we deemed it appropriate that he did that outside of the (AFL) football program in 2021 and he play in the SANFL.

"Tyson, as is his right, he wasn't accepting of that.

"And because the two parties were unable to reach an agreement on that, we have decided to part ways."

The Crows stood down Stengle last December when a photo circulated purportedly showing him with drugs.

That followed Stengle twice being suspended for four games for separate off-field incidents earlier last year.

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In April, the Crows banned Stengle for four AFL games after he was caught drink-driving.

And in September, Stengle and then-teammate Brad Crouch were suspended by the AFL after being caught with illicit drugs.

Stengle was again banned for four games and Crouch, who has left the Crows for St Kilda, was suspended for two games when the AFL found the pair guilty of conduct unbecoming.

The Crows and the AFL in January gave permission for Stengle to train with his former SANFL club, Woodville-West Torrens Eagles.

Kelly suspected Stengle was looking to the AFL's mid-season draft for a return to the elite competition with another club.

"He wanted to come back into the (AFL) program much sooner than we were able to (offer)," he said.

"From our club's perspective ... we needed to build up some confidence in Tyson's ability to return as an AFL footballer.

"Tyson definitely has some prospects because if he plays some really strong (state league) footy, there is the (AFL) mid-season draft in June."

Stengle was recruited from Woodville-West Torrens to the AFL by Richmond in 2017, where he played two games.

He joined Adelaide for the 2019 season and played 14 games for the Crows.