Callaway was signed to the Cowboys' practice squad last November but did not dress for a regular-season game. He was competing for one of the final wide receiver spots but had not practiced during the last two organized team activities open to the media.
A former fourth-round pick in 2018 by the Cleveland Browns, Callaway has not caught a pass in a regular-season game since 2020.
To replace Callaway, the Cowboys signed wide receiver Tyron Johnson, who was one of seven players the club worked out Monday. He has played for four teams with 23 catches for 422 yards and three touchdowns in his career. All but three catches and 24 yards came in 2020 for the Los Angeles Chargers.
The Cowboys also worked out wide receiver N'Keal Harry, a former first-round pick of the New England Patriots, wide receiver Lynn Bowden, quarterback Jacob Eason, quarterback Bryce Perkins and cornerbacks Jordan Miller and Thakarius Keyes.