Former Ajax player, Dolberg, 21, who joined Nice in August, had his watch stolen in the dressing room after a training session on September 16 and reported the theft to police.
Diaby-Fadiga later confessed to the theft, apologising to Dolberg and reimbursing him of £62,000 (€70,000), the value of the watch, with the Danish forward expected to drop all charges against him.
The statement by the club read:”OGC Nice and Lamine Diaby Fadiga parted ways on Tuesday. Following the theft of Kasper Dolberg’s watch from the professional first team’s changing room, and the subsequent admission of the player, the Club decided to cancel its contract with the 18-year-old forward with immediate effect.”
“Above and beyond all sporting and financial consideration, OGC Nice cannot and will not accept such behaviour that betrays the confidence that unites all the club’s employees and all the members of the Rouge et Noir family.”
Despite the incident, Diaby-Fadiga has been linked with a potential move to Ligue 2 outfit Paris FC, who recently signed free agent Jeremy Menez.