Dodwell, 19, joined the soap as Melody Jones in March last year, describing it as "a dream come true".
"I was actually driving at the time! And I saw my agent’s phone number come up on my phone screen and I just hastily pulled over to the side of the road to answer," she told the official Home And Away website.
"It was a dream come true to get a role on Home and Away, so I accepted right away and I was just over the moon!"
Talk of Dodwell’s departure comes just days after it was announced that her co-star Conrad Coleby is to leave the series following a decision by producers that the character had run his course.