The full-back was arrested after a woman claimed that he sexually assaulted her in a nightclub in Barcelona on December 30.
The 39-year-old, who has denied the accusations, was taken into custody and appeared in front of a judge the same day. He was then ordered to be held without bail.
Liga MX side Pumas have reacted by terminating the ex-Barcelona star's contract, which was set to expire in July 2023.
Club chairman Leopoldo Silva announced in a brief statement to the press on Friday evening that the veteran Brazil international is no longer part of the club.
Dani Alves joined the Mexican side in July last year and has made 13 appearances, most recently in the first game of the Liga MX Clausura on January 8. He was not part of the side that lost 3-0 to Santos Laguna the following week.