Nelson has spent his entire 10-year career in Green Bay.
"We cannot thank Jordy enough for all that he has given the Green Bay Packers and our community for the past 10 years," general manager Brian Gutekunst said in a statement. "He has been an exemplary professional and teammate and greatly contributed to our success. Jordy will always be a member of the Packers family and we look forward to his eventual induction into the Packers Hall of Fame."
The move clears $10.2 million in cap space, according to Over the Cap, but still comes as a surprise.
Nelson had a rough 2017 campaign, struggling with both Aaron Rodgers and Brett Hundley under center. The veteran caught just 53 passes for 482 yards, marking the first time he failed to eclipse 11 yards per reception in a season.
Nelson was selected in the second round (No. 36 overall) of the 2008 NFL Draft out of Kansas State. He'll go down as one of the top wide receivers in Packers history, ranking second all time in receiving touchdowns (69) and fifth in receiving yards (7,848).
ESPN's Adam Schefter reports the soon-to-be 33-year-old intends to continue his NFL career.