The youngster had only played a total of 43 minutes over three substitute appearances earlier in the season.
He was only given three substitute appearances last season as well, and was then surprisingly given a one year extension to his contract in the summer. However, with new faces coming in the squad needs to be cut so the Hull-born winger follows Theodore Whitmore, Ian Goodison, Adrian Caceres, Jason Van Blerk and Rodney Rowe onto the 'scrapheap'.
Molby said Morley was "unlucky" after showing him the door today.