The defender joined Harriers in the summer, moving into full-time football for the first time in his career.
However, all parties have agreed that his deal will be cancelled, with the ex-Leamington man re-joining former club Solihull.
Daly told the Moors website: “The move only came about today and I can’t say a bad word about Kidderminster, they’ve let me leave the club on good terms.
“I come straight back and I just can’t wait to get going. Nothing bad has happened at Kiddy, it just hasn’t worked for me”.
Daly's only appearance for Kidderminster came in a 2-0 home win over his other former club, Leamington, last month.