Paez joined Amakhosi on a two-and-a-half-year deal in January 2017.
Despite being highly rated by former Amakhosi coach Steve Komphela, the former Real Mallorca youth player has failed to rise to the occasion at Naturena.
Also set to leave the Glamour Boys are midfielders Bhongolwethu Jayiya and Joseph Molangoane, whose contracts with the club are set to expire in June this year.
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According to a source close to the club, Chiefs are looking forward to bringing in two foreign players during the next transfer window.
"Paez is leaving," the source tells snl24.com/kickoff.
"The club will finalise the list of all the players leaving at the end of the season. Jayiya and Molangoane are some of the players expected to leave the club at the end of the season."
Chiefs travel to Limpopo this weekend to play Black Leopards in an Absa Premiership match on Saturday.