The move puts Saturday's home game with Fleetwood in doubt, with the Football Conference setting a deadline of Wednesday to decide if it goes ahead.
In a statement, administrator Harvey Madden said there was "no alternative" given the club's financial position.
He also said that, despite interest, no formal takeover bids had been received.
The statement read: "Given the current financial position of the club and, as a consequence of my legal obligations, I have had no alternative but to terminate the contracts of all playing staff and the retained administration staff.
"Notwithstanding this, there remain parties interested in either injecting funds into the club to enable it to continue operating or acquiring the club.
"Every effort is being made to progress this to try to save the club. However, at this stage I have still not received any formal offers and unless a deal is concluded as a matter of urgency, time will have run out for Darlington Football Club."
"To say I feel sick is an understatement," said Marc Bridge-Wilkinson on his Twitter account, while team-mate Paul Arnison told of his frustrations at being made redundant and defender Aaron Brown expressed surprise at being asked to train for the Fleetwood game.
Adam Rundle, who was one of the players to have accepted reduced payments to ensure the club fulfilled the fixture at Barrow earlier this month, was equally disappointed.
"Not a good day if you're a player - even got taxed on the £200 we were offered for the Barrow game, [I am] hoping Darlo survive though, looks promising," Rundle said on his social networking account.
If Darlington fail to meet their fixtures they could follow the likes of Halifax Town and Chester City and face expulsion from the Conference with the prospect of asking a lower league down the Pyramid to accept them. Both Chester and Halifax dropped down to what was then Unibond North - three tiers lower.