The Jets have restructured Coles' contract to allow him to become an unrestricted free agent.
"I have had the pleasure of getting to know Laveranues since he has entered the league in 2000," Jets GM Mike Tannenbaum said. "He is a fierce competitor, a great teammate and a good friend who has always given his best to the New York Jets.
"I spoke with him today and expressed my appreciation for his contributions both on and off the field. This move will allow Laveranues to explore his options, and we both agreed to keep the lines of communication open."
Money is the driving force behind the club's decision to let Coles go. He has been dissatisfied with the Jets for a number of reasons within the past year. He's entering the final season of his contract and is on the books for $6 million guaranteed in 2009.
Coles has spent seven of his nine NFL seasons with the Jets, and is fourth on the team's all-time list with 459 receptions. He had 70 catches for 850 yards and a team-high seven touchdowns last season.
He led the Jets in receptions four times and finished one catch behind Jerricho Cotchery last season.
Tim Graham covers the NFL for ESPN.com. ESPN 1050 radio's Andrew Marchand contributed to this report.