Rowe, 19, did have a deal in place with the Bantams until the end of this season but he will now leave with immediate effect.
The diminutive winger, who progressed through City's youth ranks in the summer of 2011, spent a period of last season on loan at Blue Square Bet Premier side Barrow.
While still an apprentice with the club, Rowe made his senior City debut as a second half substitute during the Bantams' League 2 fixture at Southend United back in April 2011.
Rowe was then handed his maiden starting appearance with the first team for City's last game of the 2011/2012 season against Crewe Alexandra.
The football club would like to thank Dominic for all his efforts with the Bantams and wish him all the very best for the future.