Hasselbeck, 37, was entering the final year of his contract and was set to make $5.5 million in base salary. With bonuses, he would have counted $7.5 million against the club's salary cap.
"I want to thank Matt for his contributions to our team over the last two years," Titans general manager Ruston Webster said. "He was an important part of the transition process -- he was a pro at every turn and he provided an example to the rest of the team. I know that we are a better team for his being here and we wish him the best."
A three-time Pro Bowler, Hasselbeck spent two seasons with the Titans. After throwing for 3,571 yards in 2011, he was the backup to Jake Locker last season.
In 14 seasons, Hasselbeck has thrown for 34,517 yards with 201 touchdowns and 147 interceptions.