Cheechoo, a former 50-goal scorer, played in two of the Stars' three preseason games and didn't register a point.
"He's a good player. He's played well, but you've got to be better than the people that we've got in the top positions," Stars coach Marc Crawford said. "No disrespect, but our guys in the top positions said to us that no one is taking our spot. You really have to outplay somebody. It's unfortunate, but that's where it is."
Cheechoo had five goals and nine assists in 61 games for the Ottawa Senators last season. His best season was 2005-06, when he tallied an NHL-best 56 goals and added 37 assists for the San Jose Sharks.
The Senators waived Cheechoo in June and bought out the final year of his contract.
The Stars also reassigned 16 players to the the training camp of the Texas Stars, their AHL affiliate.
Mark Stepneski covers the Stars on his blog at ESPNDallas.com.