The 26-year-old was arrested last month on suspicion of assault following Town’s end-of-season awards event.
A Luton statement read: “The Hatters can confirm that striker Ricky Miller, who was signed from Boston United last summer, has had his contract terminated (subject to appeal) following an internal investigation into a breach of club discipline.”
Winger Shaun Whalley, who was also arrested in connection with the same incident, has left the club by mutual consent. Both players were bailed until June 2.
Defender Danny Fitzsimons has also left Kenilworth Road by mutual consent having failed to make a single appearance for the Hatters during his injury-plagued two years with the club.