City have released Ruon Tongyik, Bruce Kamau, Manny Muscat, Nick Fitzgerald and Christian Cavallo as the club seeks to improve on their semi-final exit this season.
Warren Joyce will now have a full off-season to mold the existing squad to his requirements, with Kamau and Tongyik set to join Western Sydney Wanderers
In a statement, the club said it "would like to thank the outgoing players for their contribution and professionalism during their time at Melbourne City FC and wishes them all the best in their future endeavours."