The 38 year old posted on his personal Twitter account, in regard to Thomas' appearance on Celebrity Big Brother, "I wouldn't fancy the bed next to Gareth Thomas #padlockeda**ehole"
A statement from the club followed which read, "The Oxford City board have decided to release Lee Steele in view of his recent comment via social media which is considered seriously contrary to the ethos of the club."
Steele has had a long and successful career in the lower leagues, turning out for Northwich Victoria, Brighton & Hove Albion, Leyton Orient and Chester City to name a few.
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