It's an interesting one.
It's certainly something that happens in other leagues around the world. I just have a feeling its not something that can happen in the A league, due to the PFA.
Could be seen more as 'redundancy' which clearly isn't legal as you'd then replace him with another player. I think there would have to be a clause in the contract permitting it, and I don't see one in the standard player contract I just had a quick look at.
Happy to be proven wrong, as I'm not certain about any of this.
Probably a good way of getting an idea is to look back and see if there has been any instances where a contract has been terminated and it clearly wasnt by mutual consent, or if a player has ever contested on that basis and won. We had G*o, but I imagine he would have been done under a breach of contract (timeliness at turning up to training etc)