Ben-Hatira was once considered one of the brightest prospects in the Bundesliga when he made his first-team debut for Hamburger SV in 2007 at the age of 18.
However, the latest blow to his waning career comes in the form of his links with a controversial Islamic Salafist sect, with German media claiming it is connected to 'terror networks' around the country.
"Further co-operation makes no sense," Darmstadt's president Rudiger Fritsch said. "We wish Mr Ben-Hatira, who has always behaved impeccably, every success in his future sporting career."
The Tunisia international denied any wrongdoing after the events unfolded last week, claiming it is a deliberate attempt to destroy his Bundesliga career.
"Anyone who looks at my CV will quickly see that I am socially involved and fight for equal treatment between people of different skin colour, ethnicity or faith," he wrote on Facebook in response to fans' banners at a recent league game.
"I think the real scandal is that there is now an attempt to sabotage my sports career in Germany."