The small forward was the final player cut by the Lions as part of today’s second official list lodgement ahead of the 2014 season.
The Lions have had trouble juggling their list since a busy trade period that resulted in five young players – Jared Polec, Patrick Karnezis, Billy Longer, Sam Docherty and Elliot Yeo – all returning to their home states and being swapped for draft picks.
Banfield, 23, fell out of favour with the coaching staff in 2013, not playing a game.
The lively small forward has kicked 57 goals from his 53 games, but was leapfrogged by Josh Green as the Lions' goalsneak.
General manager of football operations, Dean Warren, informed Banfield of the news last week, and praised him for his attitude throughout the period.
"Unfortunately Todd is a casualty of the list management process and the outcomes of a busy trade period," Warren said.
"However we are committed to res-electing Todd at next month’s rookie draft.
"Todd is a fantastic character, and he has handled himself superbly through this whole process. The club still sees him as being a valuable player and hence we are committed to retaining him on our rookie list in 2014."
The Lions will head into next week's NAB AFL Draft with six active selections inside the first two rounds – picks 7, 22, 25, 28, 33 and 34.