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In Instagram posts that have since been deleted, Tea Katai referred to Black Lives Matter protesters as "disgusting cattle" and urged violence against them according to media reports.
Black Lives Matter supporters have protested in cities across the U.S. since the death of George Floyd, an unarmed black man killed in police custody late last month, calling for police reform and racial justice.
The LA Galaxy released a brief statement on Friday announcing that midfielder Katai and the team had "mutually agreed to part ways," after "strongly condemning" Tea Katai's posts when they became aware of them on Wednesday.
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"The LA Galaxy stand with communities of colour, and especially the Black community, in the protests and fight against systemic racism, social inequality, bigotry and violence," the club said.
The 29-year-old Katai, who previously played for the Chicago Fire and signed with LA Galaxy in December, has apologised for his wife's social media postings.
The MLS season has been on hold since March, when the novel coronavirus outbreak froze much of the professional sports calendar, and earlier this week ratified a labour deal allowing play to resume in 2020.