Wheeler, who was scheduled to make $3 million in 2015, will be designated a June 1 roster cut.
Miami signed Wheeler to a $26 million contract in 2013, but he was inconsistent with the Dolphins in two seasons. Last year, Wheeler recorded just 45 tackles and struggled both against the run and pass. Opponents noticed, and he became a liability on defense.
The Dolphins have cut several expensive veterans this offseason to clear cap room before free agency begins Tuesday. In addition to Wheeler, cornerback Cortland Finnegan, guard Nate Garner and receivers Brian Hartline and Brandon Gibson were all recently released by Miami.