The Zimbabwe international struggled for game time at the Citizens this season having made only nine PSL appearances and netted two goals.
Rusike fell out of favour under City coach Benni McCarthy following the arrival of fellow striker Kermit Erasmus in January 2019.
The Citizens released the following statement regarding Rusike, who had joined the club as a free agent in February 2018.
"Cape Town City striker, Matthew Rusike joins Norwegian Premier League side Stabaek. The club thanks Matty for his contribution over the last two seasons and wishes him well for the next stage of his career," a statement read.
Stabaek, who are campaigning in Norway's top flight league, Eliteserien, confirmed the signing of the 28-year-old attacker on their official website.
Rusike is pleased to have secured a move back to Europe having played for Swedish clubs Halmstads BK and Helsingborg IF.
"I am happy to be here and (I am) looking forward to a good season," Rusike told the club's official website.
"We have a good team, a young team and it can quickly become very dangerous for our opponents," he concluded.