Axford's release comes two days after he was diagnosed with a stress reaction in his elbow.
The 35-year-old signed a minor-league deal with the Blue Jays in February. It was set to be his second stint with Toronto after he initially played for the club in 2018. He was traded to the Los Angeles Dodgers before July's trade deadline.
Prior to the injury, Axford appeared in five spring games. He had a 2.08 ERA with four strikeouts over 4 1/3 innings.
In addition to the Axford move, the Blue Jays gave reliever Bud Norris a retention bonus to stay with the team, though he remains off the 40-man roster.