Buffalo will save $2.1 million against its 2019 salary cap by releasing Ivory, whose role was unclear after the team signed veteran running back Frank Gore to a one-year deal earlier this month.
The Bills entered Monday with three of the NFL's four oldest running backs under contract in Ivory, Gore and LeSean McCoy. Gore, 35, is expected to serve as the top backup behind McCoy, 30.
Ivory played in 13 games last season, making one start. He averaged a career-low 3.3 yards on 115 carries and rushed for one touchdown.
Ivory has rushed for 5,237 yards and 29 touchdowns in nine NFL seasons for the Saints (2010-12), Jets (2013-15), Jaguars (2016-17) and Bills (2018).