Cutting Hill, 26, frees up $2.84 million in cap space for Baltimore. Hill signed a two-year, $7 million deal with the Ravens eight months ago, but he fell out of favor toward the end of the season. The Ravens started Lardarius Webb over Hill in the final two regular-season games.
Baltimore is expected to go with Weddle and Webb as their starting safeties in 2016.
Hill's big plays proved critical at times for the Ravens in his two seasons in Baltimore. He helped win a Monday night game in New Orleans two years ago with an interception return for a touchdown, and he won a Monday night game in Cleveland with a touchdown off a blocked field goal.
But Hill has had off-the-field issues in the past. He has been suspended three times in his four NFL seasons for violations of the league's substance abuse policy.