I am pretty sure that is not correct (but I'm not 100%). We will hold his registration until his contract expires, and if he is released he can move elsewhere. He is on "non-contract" terms, but I am certain there has to be an actual contract in place (maybe one week deals or something).
What can't happen is that he is transferred from us to another club, but he can become a free agent after the window closes and move to another team. If he is released in the middle of Feb and then is out of work for a few weeks I am sure another team is allowed to pick him up.