According to Hawthorn football manager Chris Fagan, the troubled recruit has struggled with the demands of AFL football and has decided to return to Perth.
Watch the Dayle Garlett highlights and see why the Hawks swooped
Fagan said the Hawks understood his decision in a statement released by the club on Wednesday morning.
"Unfortunately this situation hasn't worked out as the club or Dayle would have hoped, and while we're disappointed we understand his decision," Fagan said.
"Despite the club’s efforts over the past six months to help him adjust to an elite lifestyle, Dayle has found the regimented systems and standards of a professional club challenging.
"We acknowledge that Hawthorn Football Club places high expectations on all of its players, but it is equally supportive in working with each player to help them meet our standards and behaviours if they are committed to doing so."
Garlett wants to keep playing football at some stage in the future but for now has conceded the demands required of him at the elite level are too much.
"It has been tough to be away from my family and friends in a different environment and while I tried hard to stick to the disciplines of the club, it got a bit much for me in the end," Garlett said.
The talented left-footer was considered a risky a proposition when Hawthorn recruited him in last year's NAB AFL Draft.
The year before, many draft experts considered Garlett to be a first-round selection, but he was overlooked due to concerns about his behaviour.
Last summer, he wasn't selected to play a pre-season match after the Hawks took the chance on him because he wasn't up to the required level, and it soon became evident he was struggling with the demands of AFL football.
He was also sanctioned by the players for his use of social media, reportedly posting many photos of himself on Facebook and Instagram.
Fagan, who will hold a press conference to elaborate on the situation further on Wednesday, said the Hawks' decision to use pick No.38 overall in last year's draft – their second selection – wasn't one they regretted despite Garlett's decision.
"No club wants to keep a player who's not happy, and so while we are disappointed Dayle has decided to remain in Perth, we do not regret giving him a chance to pursue his dream of playing AFL footy," he said.
"There is no doubt Dayle is a very talented player, and all at Hawthorn Football Club wish him well for the future."
Fairfax media has reported the Hawks will delist Garlett this week.
The club will be unable to promote a rookie in his place as they are unable to put a player who is not injured or ill on the long-term injury list.