Pearce joined City last summer from Chesham United, where he had been since 2014.
He scored 50 goals for the Generals over the three seasons he was at the Meadow.
Prior to this spell, he was at Hemel Hempstead Town, and scored 17 goals in the 2013/14 campaign that saw them win the Southern League Premier title.
Pearce made thirty-two appearances for the Hoops, scoring 4 goals.
He will be greatly remembered for the impact that he had on City's memorable Emirates FA Cup run to the Second Round Proper, firstly scoring a crucial second equaliser against Leiston which set the base for the Hoops to win the match in added time, before he turned provider to Matt Paterson for the only goal of the game in both the Fourth Qualifying Round against Bognor Regis Town, and the First Round Proper against Colchester United.
Mark Jones admitted it was a very tough decision to have to make, telling the club`s official Pitchero website: "It was not an easy decision to let Dave go, I've got a lot of time for Dave, he's a very good player with a good attitude, and I've enjoyed working with him over the past seven or eight months.
“I just felt that with our change of shape, playing with three up front, that he's fighting against Matt Paterson, Sam Nombe, Ezra Forde, Zac McEachran and Rob Sinclair, I just felt that his opportunities would be limited.
“Dave wants to be playing as well, like any good player he wants to be out on the pitch rather than sat on the bench.
“He was excellent for us, he played a very big part in our FA Cup run. He got a very important goal against Leiston when we were looking like we were going out with 5 minutes to go, and also set up the goal for Matt Paterson at Colchester”.