Manager Gavin Cowan had threatened a possible clearout of his Bucks squad who have under-performed so far this season, the latest defeat a 3-1 reverse at previously winless Blyth Spartans on Saturday.
And left-sided defender Morley, 32, has exited the New Bucks Head after just over a season with the club.
He made 33 appearances for Telford – including eight this term – and scored four goals after joining in summer 2018.
Morley was shown a red card in the recent Win Pryce Trophy fixture with Shifnal Town.
He was part of the majority of last season's squad rewarded for their efforts by staying at Telford for another campaign.