Of course!by Tsitshoh (Login tsitshoh)
You don't specify what age group, circumstance or anything else about the particular situation, so the general answer is yes, when you are cut from a team you are free to play for another team. If you want to provide more specifics we can try and answer more specifically.
Here are the OLA Rules & Regulations which includes the release processes for Major, Senior, Junior and Minor.
2011 PROVINCIAL CHAMPIONS
Tyke: Whitby (A), Kitchener (B), Burlington (C), Oshawa (D), Kahnawake (E) Novice: Whitby (A), Six Nations (B), NOTL (C), West Durham (D), Newmarket (E) Peewee: Whitby (A), Brampton (B), Toronto Stars (C), Kahnawake (D), Halton Hills 2 (E) Bantam: Whitby (A), Mississauga (B), Kahnawake (C), Kitchener 2 (D) Midget: Orangeville (A), Burlington (B), Arthur (C), Kawartha (D) Intermediate: Brampton (A), Markham (B), Clarington 2 (C)