The Alouettes and CFL slammed Bruce for his social media urging to openly gay football player Michael Sam that he "submit to God."
Bruce, who later apologized, was penalized an undisclosed amount by the league on Feb. 11th.
The Alouettes then cut ties with the 36-year-old on Wednesday after Bruce had 64 catches for 851 yards and five TDs last season.
"The Alouettes would like to thank Arland for his hard work and contributions last season. Through the challenges we faced, he played multiple roles on game day and came to work every day with the determination to win. We wish Arland the best in his future endeavours," said Als general manager Jim Popp in a statement.
Montreal did not specify why Bruce was released. The move comes two days after the Alouettes hired new head coach Tom Higgins.
Bruce, a 12-year veteran and three-time CFL all-star, won two Grey Cups during 11 seasons with Winnipeg, Toronto, Hamilton, B.C. and Montreal.