Wolfsburg chief Klaus Allofs insists they had no other option but to axe Nicklas Bendtner.
The former Arsenal striker was suspended from the club last week and the two parties are now in contract termination talks.
"We saw him as a threat to our community and so we had to act," Allofs told NDR Sport Club.
On Bendtner's payout, Allofs added: "We have commitments that we have to meet.
"We have identified several solutions, now we have to wait a few days."