Newcastle Jets have confirmed on Monday that young defender Daniel Alessi and the club have agreed on a mutual termination of the remainder of his Hyundai A-League contract.

The decision is effective immediately and it's understood the 20-year-old is set to link up with a NSW NPL1 club.

Alessi started his Hyundai A-League career at Western Sydney Wanderers before joining the Jets at the beginning of the 2016/17 Hyundai A-League Season.

But disaster struck just a few weeks into his time in the Hunter, going down with a torn ACL in training and ruling him out of the entirety of last season.

While working his way back to full fitness this season, the talented young defender hasn't been able to force his way into Ernie Merrick's first-team plans.

Alessi is the second player to depart the Jets this month following midfielder Devante Clut's move to Blacktown City Demons in the NSW NPL1.