George Smith has been sacked by Suntory.

The Wallabies legend had been cleared by prosecutors following the incident involving a taxi driver on New Year's Eve but the club has still elected to hand him his marching orders, such is the controversy-averse nature of the Japanese.

The 37-year-old, who has arrived in Brisbane this week to continue rehabilitation on a back injury that will keep him out until early April, had one year remaining on his Suntory contract.

In a statement on their website, Suntory apologised for the trouble caused by Smith's actions. "In addition to the victim and those involved, we sincerely apologize to the many people to whom we have caused trouble," the statement said.

The Top League champs also said they would conduct "thorough education for athletes and team staff" to avoid a similar incident in the future.

Earlier this week, the Reds fined Smith for keeping them in the dark in relation to the incident and not turning up to work for a week.