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Speaking after the 2-2 draw at Merthyr, the gaffer said a deal had been confirmed with an as-yet-unnamed step three club, who are said to be nearly doubling his wages.
Speculation over Sterling-James's future was rife after he was left out of the side to take on Radcliffe in the FA Trophy on 13th December and he hasn't featured since.
"Omari Sterling-James has moved on as well," he added.
When asked if a deal had been confirmed and he was no longer a Hereford player, Caddis answered: "Yeah, we've agreed a deal with a club. So Omari's moved on."
Paul Caddis then referenced social media activity from the winger.
On X, formerly Twitter, on 26th December the player said: "Sometimes the wise man says nothing at all 😔"
Four days later, he said: "The week iv had could break anyone but I still show up half smile and hope I stay strong through gods plan. 🕊️❤️"
After several replies from Hereford fans, he followed up by saying: "Last tweet has nothing to do with ball, but death of my aunt on Christmas Eve !! So please miss me with @ n dms with negativity.. respectfully"
During the interview, Caddis said: "Listen, I'm happy to go into more detail on that. I wanted the respect for Omari and his family.
"I think he's posted something on social media, he's had a difficult time at home. I want to reassure there was no ill feeling.
Omari's, I think, went out again on social media and said that he didn't want any negativity or people private messaging, or whatever it's called.
"Omari went to the chairman 10 days ago and just said that he's had the opportunity to almost double his money to be brutally honest to a club in step three."
Sterling-James, whose previous clubs include Cheltenham Town, Kidderminster Harriers and Ebbsfleet United, has made 22 appearances for Hereford this season and scored five goals.
More details are expected at 9.30am on Wednesday.