Gregorius hit just one homer with a .567 OPS over 63 games this season. The shortstop joined the Phillies on a one-year pact following the 2019 campaign. He then signed a two-year, $28-million contract with Philadelphia in January 2021.
"It's a difficult decision, but I think the right decision," interim manager Rob Thomson said, according to The Athletic's Matt Gelb.
Gregorius suited up with the Phillies for 226 contests after leaving the New York Yankees. The 11-year veteran went deep 10 times with an .827 OPS during the pandemic-shortened campaign with Philadelphia in 2020.
The Phillies reinstated second baseman Jean Segura in a corresponding move. The newly acquired Brandon Marsh and Noah Syndergaard also reported to the club. Syndergaard is slated to start Thursday against the Washington Nationals.