Haifa CEO Itamar Chizik told the Sowetan Masilela, who spent the past season on loan at Getafe, does not feature in new manager Reuven Atar's plans.
"Masilela will play in Europe next season for sure, not in Israel," Chizik said.
"At this stage we cannot say whether it will be another loan or a sale of the player outright, it is too early to tell."
Masilela has a year left on his contract. The 27-year-old's prospects might be harmed after injuring his knee in Bafana Bafana's 1-1 draw with Ethiopia in a Soccer World Cup qualifier last weekend.