This confirmed by Aloisia herself on Diva-Dirt:

Former NXT Rookie Diva, Aloisia, confirmed her release from her WWE contract exclusively on Diva Dirt LIVE tonight.

It had previously been reported that Aloisia would stay under a developmental deal and train in FCW after being pulled from the third season of NXT. However, it is now evident that she has been released from WWE entirely.

Well, I suppose this makes sense. Linda McMahon is gaining in the polls in her race for a Senate seat and it's a very real possibility that she will win. That could be one side of this. The other could be that they just balked at actually bringing her in because they didn't know what to do with her. How well would the WWE audience receive her? That's purely speculative on my part but that was the first thought in my head when I originally heard of the signing.

For her part she had this to say on her Twitter:

all over the world baby ;) nothing changes but the company logo..still 6'9" of purely committed intensity!!!

If Linda loses, you think they bring her back? Thanks to loyal Cageside Seats reader rovert for the tip.