The centre-back had been locked in lengthy negotiations with the club to extend his contract beyond June, with Motaung today revealing the talks have been terminated.
"With Mashamaite, we made an offer and his agent made a counter-offer. We exceeded that offer but there was a delay," Motaung explained at a press conference at Naturena.
"We decided that we cannot go forward and therefore we have terminated negotiations as far as Mashamaite is concerned."
Amakhosi earlier announced Mashamaite - who was also named KICK OFF Footballer of the Season - is moving on via Twitter, saying: "Tefu Mashamaite’s contract negotiations were unsuccessful. We would like to thank him and wish him all the best #KCPressCon #ThankYouTefu."
The 30-year-old joined the Glamour Boys from Bidvest Wits in July 2011.