Carl Poston, the agent for Woodson, first told NFL.com that the club would be releasing his client.
"They're getting ready to release him. It's part of the business," Poston said. "I just talked to him. He sounds like he has a lot of football left. He'd like to play for a contender, win another Super Bowl."
Woodson was set to make $9 million in 2013 and would've counted for $10 million against the Packers' salary cap.
Woodson, who signed a five-year deal before the 2010 season that was worth as much as $55 million, missed nine games last season because of a broken right collarbone but played in two playoff games. He moved from cornerback to safety last season because of diminishing cover skills.
"We had a good run," Woodson told ESPN 540 in Wisconsin via text message.
Woodson was the NFL Defensive Player of the Year in 2009 and the Defensive Rookie of the Year in 1998. He spent the first eight years of his career with the Oakland Raiders, who drafted him out of Michigan with the No. 4 overall pick.
He's the only player in NFL history with touchdowns off interceptions in six straight seasons, a feat he pulled off from 2006-11, and leads the league with nine touchdowns off interceptions since '06.
Woodson was productive for the Packers, but they have some tough decisions to make this offseason to manage the salary cap. Woodson had a year left on his lucrative deal and linebacker A.J. Hawk is under contract next year for a team that probably wants to give long-term deals to receiver James Jones, linebacker Clay Matthews and defensive tackle B.J. Raji because each of the relatively young standouts potentially could be free agents following next season.
Despite his age and recent injury, Woodson likely will be an in-demand free agent. He was injured last October but bounced back in time to defend two passes in the playoffs.
"Charles has been a stud in this league for 15 years, so whenever he's on the field with us, he's always a huge threat," Hawk said in January. "Not only is he a threat to make huge plays throughout the game, but quarterbacks, I think they know where he's at every single play. He seems to know what receivers are running before they do. And I think he has an intimidation factor as well."
Woodson had a career-high nine interceptions in 2009, picked off seven passes in 2011 and made one interception in seven games during last year's injury-shortened season.
The 1997 Heisman Trophy winner led Michigan to the 1997 national championship and has donated more than $2 million to the University of Michigan Mott Children's Hospital and Women's Hospital, where he supports pediatric clinical research. With the Packers, he was a leader as one of the best players on the team and as a mentor to younger players.
"He's like a big brother to all of us," former Green Bay safety Nick Collins once said.
Information from The Associated Press was used in this report.