The 26-year-old joined up with the Minstermen in early November, and made his debut a couple of days later against Hartlepool United.
He made nine appearances for City, including two run-outs in the Isuzu FA Trophy.
Ajiboye scored his first goal in a win over Darlington in the competition, firing home the leveller.
The winger also got on the scoresheet in our 3-0 victory against Southend United.
We thank David for his efforts in a York City shirt, and wish him all the best for the future.