The move comes one day after a report indicated the Canadiens were looking to trade the veteran defenseman.
Streit has appeared in two games this season, posting a minus-2 rating and averaging just over 14 minutes of ice time.
The 39-year-old signed with the Canadiens in the summer after splitting last season between the Philadelphia Flyers and Stanley Cup champion Pittsburgh Penguins. His $1-million salary-cap charge includes $700,000 in base pay, plus $300,000 in performance bonuses, according to CapFriendly.
Streit was drafted by the Canadiens in 2004. He made his NHL debut the following season and spent the first three years of his career in Montreal.