If Choice clears waivers, the team will then reach an injury settlement with him.
The move was made to clear a roster spot for rookie linebacker Bruce Carter, who is expected to make his pro debut Sunday night at Philadelphia.
Choice suffered a shoulder injury in the third quarter against the St. Louis Rams last week and was limited in practice Wednesday and Thursday before tightness in his hamstring kept him out of Friday's workout altogether. He underwent an MRI exam for the hamstring injury Friday.
A message on Choice's Twitter account indicated that his days with the Cowboys were done: "I just want to say thanks to all the great dallas cowboy fans. My time in Dallas has come to an end and the best is yet come. God bless."
In four NFL seasons, Choice has rushed for 1,139 yards on 250 carries. He scored eight touchdowns mainly as a backup.
The 2008 fourth-round pick from Georgia Tech craved a bigger role but was never granted that with the Cowboys. There was speculation that the Cowboys would trade Choice, but the team never got an offer it deemed necessary to make a move.
What also hurt any potential trade was the fact that Choice was in the final year of his contract, and opposing teams figured the Cowboys would just release him at some point.
Choice was a popular player in the locker room but fell out of favor with the coaching staff for several gaffes. In the 2010 season opener at Washington he fumbled near the end of the first half, leading to a Redskins touchdown.
This season, Choice ran out of bounds instead of staying in bounds late in a game against the Redskins. Last week, on his second carry of the game against the Rams, he turned the ball over on a fumble and injured his shoulder on the play.
Choice said he needed to make plays with his limited opportunities. But he didn't make enough of them. He did start four NFL games and had impressive moments, including rushing for 88 yards on 23 carries in a loss to Pittsburgh in 2008. He also gained a career-high 100 yards in a backup role in an overtime win at Indianapolis.
Calvin Watkins and Todd Archer cover the Cowboys for ESPNDallas.com.