His former club the Eels are expected to be his destination if he rejoins rugby league.
Hayne said in a statement: “Last Friday I had a meeting with Ben to discuss my future with the team and I was informed that my time has ended. As much as I would have loved to go to Rio, I too knew I wasn’t ready yet.
“During my time with the team, I pushed my body above and beyond. I used all my experience as a professional athlete and have tried everyday and in every way possible to make this team and make it better but unfortunately, time has been against me.
“I’ve loved every minute of training with the Fiji Rugby 7’s. Not only are they back to back world champions but they are a bunch of guys who have welcomed me into the team as one of their own family.
“It was hard to comprehend and understand at first why I came here? Why God put me here, but deep down I knew there was a reason and a purpose. God takes you places not so you can achieve what you set out for, but to play a part and help something greater than yourself.
“This has been an amazing journey for me and a truly humbling experience. I have learnt so much and will never forget my time with this team.
“I want to thank Ben and the entire coaching staff, the players and especially the fans. The support of the Fijian fans and fans around the world over the past few months has been incredible. I am mesmerised at the love and passion people have for the 7’s.
“For now, I’ll be in camp with the team until mid-week before heading back home to Sydney for some time out and will determine my next steps from there. I’ll enjoy watching from afar and wish the team all the best of luck on their road to Rio.
“Going to miss our prayers twice a day, endless laughs and ma man Sharkie! Nothing but love for the taganes.”