It is the third club the talented but wayward star has been sacked by after behavioral issues saw him dismissed by Canberra and Sydney Roosters.
The Daily Telegraph reports the offending image was of the player in the toilets of popular nightclub Northies
Carney had reportedly been warned already this season.
The incident came after a rare positive moment for the Sharks this season when Carney helped them to a 24-22 win over the Broncos – coming back from 22-nil down – after going three games pointless.
Carney’s NRL career is now all but over and at 28 his only option now appears to be heading overseas, most likely to the Super League.
Alcohol-related incidents saw Carney banned from the NRL in 2009 and he ended up playing for the Atherton Roosters in Cairns.
He then joined the Roosters in 2010 and won that season’s Dally M medal for best player in the NRL.
He was sent packing by the Roosters though in 2012, released from the final year of his contract after breaching a team alcohol ban.
Carney was thrown a lifeline by the Sharks in 2012 and made his Origin debut that year.