The Herald reported on Tuesday Carney would be added to the Sky Blues roster on an 18-month deal.

“It feels great to be coming home,” Carney said in a Sydney FC statement.

“Sydney FC is a huge club and we have a great chance of winning silverware this season.

“I enjoyed my time with the Jets and in particular with the fans who were brilliant but now I’m happy to be home,” said Carney.

CHIEF executive David Eland insists that the decision to release David Carney is the best outcome for the Newcastle Jets.

Carney had the final four months of his contract mutually terminated on Tuesday, opening the way for the former Socceroo to join Sydney FC.

“It is a good outcome. Ultimately it was the only outcome,” Eland said.

“Clearly the player didn’t want to be here any more. He was disengaged and disgruntled. 

“It became clear to us, and I think his omission on Saturday was reflective of where we were at.

“Having David remain in the squad was not going to be conducive to the team’s performance for the remainder of the year. 

“It is certainly not in line with the culture we are trying to build at the club.”

Carney has been the Jets’ best player, scoring three goals and playing a hand in several others. 

However, he has fallen out with coach Scott Miller in recent weeks and the Newcastle Herald has been told that the winger’s relationship with other members of the squad had strained. 

The Jets were in talks with Sydney about a player swap and had targeted the return of Andrew Hoole to his home town. 

However, the 22-year-old turned down the approach and instead is determined to fight for his position at Sydney, where he is six months into an 18-month deal. 

Several other Sydney players were discussed but were either unsuitable or not interested.

“Clearly the process has taken this long because that is what we have been trying to negotiate,” Eland said. 

“I’m not going to talk about players Sydney were trying to put on the table. 

“What you can read is that we have determined that we want flexibility in the future to contract players that our aligned to our strategy.”

Transfer fees are not permitted between A-League clubs.

Sydney FC, who sold Alex Gersbach to Norwegian champions Rosenborg BK on Monday for an estimated fee of $300,000, have signed Carney on an 18-month deal.

The Jets can stockpile the balance of Carney’s salary, believed to be about $80,000, to spend above the salary cap for the 2016-17 campaign.

“David stops being paid by the Newcastle Jets today,” Eland said.

“There are salary-cap banking provisions within the regulations. Looking to the future, clearly David’s release frees up a significant amount in next year’s salary cap.”

The Jets have recently added Olyroo Steve Ugarkovic and former Danish international Morten Nordstrand to the roster.  

Nine other players are off contract, headed by imports Leonardo, Milos Trifunovic and Enver Alivodic, in-form goalkeeper Mark Birighitti and home-grown midfielder Ben Kantarovski.

Carney was told he was part of the club’s plans for next season but he would likely have to take a pay cut.

“We have a responsibility, particularly with our financial situation and the ownership model as it stands, to maximise the value of every dollar in our salary cap,” Eland said.

“David was signed initially as an Australian marquee. David and his management were very keen to negotiate a renewal with us. 

“During those discussions we made it clear that David was part of our future plans, but we were going to negotiate on our terms, when we were ready, and it was likely that we would need to review his level of remuneration.”