Musonda, who was loaned to Golden Arrows in 2015/16, started training with Highlands last month with a view to earning a contract under head coach Allan Freese.
However, the club's director Larry Brookstone has confirmed the Zambian has moved on.
"Musonda is no longer training with us. Cale is still here and we will see in the next two weeks if we sign him or not."
Cale began his trial at the PSL newcomers at a similar time after leaving Ajax Cape Town in the off-season.