The Zimbabwean was supposed to spend the whole of this season at Singida.
According to a source at the club, Katsvairo asked to be released due to limited game-time. He was largely used to provide cover for Rwandan striker Danny Usengimana.
"He was dropped by Singida United," the source tells KickOff.com.
"He was released alongside three other Zimbabweans during the Tanzanian mid-season transfer window [runs from November 15 to December 15).
"He scored three goals. He had started well but injuries hampered his brief stint, but he didn't play so many games. He is no longer a Singida player."
He adds: "True, he asked to be released, but again the club was willing to drop him because he was not playing. He was playing when Danny Usengimana was sick, but when he recovered Michelle dropped to the bench."
Prior to his move to Singida, Katsvairo scored three times for Amakhosi in 16 appearances in all competitions.
The 27-year-old's contract with Chiefs runs until June 2019.
Katsvairo confirmed to this website that he is currently in the country sorting out his future.
Efforts to reach Chiefs spokesman Vina Maphosa were in vain as numerous calls and messages went unanswered.