Foles, one of four quarterbacks on the roster, became further expendable when the Colts used the fourth overall selection in last week's NFL draft on former Florida quarterback Anthony Richardson.
The Colts endured constant quarterback upheaval last season en route to a 4-12-1 finish, with four changes made at the position between Matt Ryan, Ehlinger and Foles.
Foles, who was making his second start of the season, suffered a rib injury in Week 18 and was replaced by Ehlinger.
He was lured to Indianapolis last season to serve as a backup to Ryan by former Colts coach Frank Reich, with whom Foles won a Super Bowl with the Philadelphia Eagles after the 2017 season.
Reich was fired after nine games.
Foles, 34, was entering the second year of a two-year contract. It's unclear whether he intends to pursue an opportunity with another team. He completed 25 of 42 passes for 224 yards with no touchdowns and four interceptions in his two games last season.