Jets release Carney to sign with Sydney FC

Newcastle have agreed to grant David Carney a release from his contract, opening the door for him to join Sydney FC.

More than a week of negotiations over the 32-year-old utility finally came to an end on A-League transfer deadline day.

With the Jets having given Carney no guarantee of a new contract at the end of this season, and Sydney keen to get him on board for their upcoming Asian Champions League campaign, talks centred on a player-trade arrangement for one or more Sky Blues players.

However, it's understood one of the main swap options, winger Andrew Hoole, was unable to be persuaded to rejoin his former club the Jets less than a season after he left.

Instead, FFA-owned Newcastle have effectively allowed Carney to leave for free and reunite with Sydney, whom he helped to the inaugural A-League title 10 years ago.

Speculation a deal was imminent escalated over the weekend when the former Socceroo was left out of Newcastle's travelling squad to face Adelaide on Sunday.

He was also a notable absentee from Jets' training on Tuesday morning.

"Newcastle Jets have determined that retaining Carney for the remainder of his contract is no longer in the club's best interests, and have agreed to his request for a release," the Jets said on Tuesday in a statement.