He played four minutes in Cleveland's 104-84 exhibition loss to Toronto on Tuesday.
The Cavaliers also released guard Michael Dickerson, who was excused from camp on Oct. 1 for a personal matter.
Allred was signed to a pair of 10-day contracts last March before the team signed him for the remainder of the season in April. He played in three games and averaged 1 point.
Allred, who played in college for two years at Utah before transferring to Weber State, is writing a book about his disability and growing up in a polygamous sect in Utah.
The Cavs said Dickerson expects to pursue a return to the league in the future.