Parramatta has torn up Michael Jennings' $8000 a week salary while he is banned for alleged drug cheating.
Jennings was suspended by the NRL last October for returning a positive sample for banned substances Ligandrol and Ibutamoren and three of their metabolites.
The former Australian international currently works for a building company while he awaits a verdict.
According to Phil Rotherfield from The Daily Telegraph, the Eels will continue to provide welfare support but have suspended the 32-year-old's contract which expires at the end of the year.
Jennings has played 298 games and scored 154 tries in the NRL since his debut for Penrith in 2007.
He crossed to the Roosters in 2013 and then to the Eels in 2016, where he has made 105 appearances.