The 24-year-old was on a yearlong loan to Bedford after joining them in the summer, but was recalled by the Men of Gwent early November before heading off with the National Sevens Team.
Jones made 45 appearances for Newport Gwent Dragons over the 4 seasons he was with the Welsh region.
Newport Gwent Dragons Director of Rugby, Lyn Jones, commented: "Following his return to the Dragons and appearances with Wales Sevens, Steffan requested to be released from his Dragons playing contract so that he could concentrate on his rugby in Bedford.
“We would like to take this opportunity to thank Steffan for his contribution to the Dragons since joining and we wish him all the best with Bedford and in the future."
