Machlas joined Eredivisie giant Ajax Amsterdam in June 1999 for a then-club record $8.6 million.
Despite netting 38 goals in 74 Eredivisie league games spread over three seasons, Machlas' goalscoring record was not deemed prolific enough for the demanding Ajax fans and coaching staff.
The termination takes effect immediately," Ajax said in a statement, adding that "the player could now join another club on a free transfer".
The former Vitesse striker, who was the highest-paid player at Ajax, suffered further misery in Spain, after he was arrested for traffic offences.
He played under the man he calls his "footballing father", Dutch coach Eugène Gerards, who gave Machlas his break aged 18 at OFI Crete.
On 17 May 2008, he announced his retirement after the end of the Cypriot Cup final, where APOEL beat 2–0 Anorthosis and clinched the title.
He also scored a crucial goal against Russia that led Greece to 1994 FIFA World Cup at only 20 years of age.
He started each of Greece's group games in the USA though they lost all three, to Argentina, Nigeria and Bulgaria and failed to score a goal.