Barry told teammates on Wednesday afternoon the pull of immersing himself with family and culture back home in central Australia outweighed his desire to play AFL football.

He moved from Alice Springs, aged 14, to Box Hill Secondary College on an Evonne Goolagong tennis scholarship and arrived at St Patrick's College mid-year nine, to join his brother Ben.

North Ballarat Rebels talent manager Phil Partington and Howard Clark each spoke highly of Barry's raw talent and work ethic in year 12, once he settled down and changed his attitude to the game and his school work.

Neither would comment on Barry's decision because they had been unable to contact Barry, his manager Alex McDonald, or club contacts directly.

Clark hoped Barry had a good support network about him after what was sure to have been an emotionally tough decision.

"Dom made his oral presentation in year 12 on reconciliation in front of the school community and got a 19 out of 20 for it. He was always so proud of his heritage," Clark said.

"He's a fantastic young man...there's some hurt somewhere and I just hope he is ok."

The 20-year-old says he wants to reconnect with his culture in Anangu Pitjantjatjara Yankunytjatjara, or APY, lands.

In a club statement made on Wednesday afternoon, Demons' football operations manager Josh Mahoney said time away from such a young age had weighed heavily on Barry.

Barry had signed a two-year contract with the Demons in July and, at the time, said he was thrilled to stay at the club in an exciting rebuild time.

He made his senior debut this season and played five games.

But he failed to fulfil his off-season fitness requirements and informed the club of his decision to leave on the first day of pre-season training.

Barry had an early history with the Rebels of not showing up to pre-season training sessions and, despite his natural talent, failed to break into the St Pats first XVIII in year 11 because he struggled with discipline.

In the summer that followed, he knuckled down and seized another chance with the Rebels alongside close friend and fellow indigenous player Jake Neade (now with AFL club Port Adelaide).

Barry desperately wanted to play AFL.

"They worked for each other. Jake pushed Dom and Dom pushed Jake back to improve in the game. They went to nationals with each other playing for the Northern Territory," Partington said.

"Dom didn't put a foot wrong and really enjoyed his footy.

"The amount of work and effort he put in was impressive. It was an emotional time for (Rebels head coach) Dave Loader and myself when Dom was drafted."

Barry joined the Demons in 2012 via a Greater Western Sydney zone on-trade in a complicated deal that also delivered Jess Hogan to the Dees.

Melbourne football operations manager Josh Mahoney said in a statement released Wednesday afternoon that the club would make a submission to the AFL on "exceptional and compelling circumstances" which, if approved, would allow Barry a chance to return to the club should he choose.

"The Club would like to thank Dom for his honesty and selflessness in coming to this decision at this time," Mahoney said.

"Whilst we believed that Dom had progressed well and were looking forward to his further development, we fully support the decision made by Dom and will assist him at every opportunity with his transition."