Martin, 27, only joined the Vanarama National League North Minstermen at the start of November.
He left Curzon Ashton to “help get York City back to where they should be”, he said on his arrival earlier this month.
But it has turned sour for the Martin, who has spent the last seven years playing in Hungary, Iceland, Denmark, Norway, and Belgium.
The club have released a statement confirming their move and say they won’t be going into further detail.
“Striker Gary Martin has parted company with York City Football Club with immediate effect following a disciplinary issue.
“Martin, 27, joined the club on a non-contract basis on November 2 after being released by Belgian club Lokeren.
“The club will be making no further comment on the matter.”