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Rice Jr breached bail conditions last night and made an appearance in the Auckland District Court this morning, the club said.
"Glen Rice Jr's contract with the New Zealand Breakers has been terminated with immediate effect," the Breakers said.
"Mr Rice was picked up by police last night after breaching bail conditions and made an appearance in the Auckland District Court this morning.
"He has been bailed again to reappear in court on his original hearing date of February 10.
"Mr Rice came to the club as an injury replacement player to cover for import Scotty Hopson who is now fit.
"That means Mr Rice was always ineligible to play against the Brisbane Bullets at Spark Arena tonight.
"The club will continue to assist Mr Rice with his personal struggles until he is freely able to return home to his family in the United States."
Last month Rice Jr was suspended after being arrested over an alleged assault with intent to injure in an Auckland bar.
He had joined the club just 10 days prior as an injury replacement for Hopson, and brought with him a well-documented chequered past. The Breakers had suspended him indefinitely after the arrest, but it was lifted, and Rice Jr played in the Breakers' NBL match against the Cairns Taipans at the weekend.
The Rice Jr saga continues a tumultuous campaign for the Breakers, who are second-to-last on the ANBL ladder with three wins and nine defeats. In addition to Rice Jr's off-court troubles, two days after Rice Jr's initial arrest, Breakers forward Tom Vodanovich was met by police at Auckland International Airport after a flight back from Perth.
The Tall Black admitted he had consumed alcohol and a sleeping pill during the flight, which caused him to be loud and intoxicated.
No charges were laid.
Breakers owner Matt Walsh remained staunch over the club's position, rejecting claims they were going downhill since he purchased the team in April 2018.
The Breakers take on the Brisbane Bullets tonight in Auckland.