Berry was just two seasons into the six-year, $78-million extension he inked in 2017. Heel injuries limited him to two regular-season games last year.
"We continually evaluate every aspect of our football team and we came to the decision that it was in our best interest to release Eric," Chiefs general manager Brett Veach said in a statement. "Knowing what Eric has meant to this organization and this city made this an incredibly difficult decision. We wish him nothing but the best."
Berry spent nine campaigns in Kansas City but major injuries and a Hodgkin's lymphoma diagnosis in 2014 wiped out almost four of them.
"I'd like to thank Eric for his contributions to our team and the Kansas City community over the last nine years," said Chiefs head coach Andy Reid. "Seeing his passion and watching his love for the game has been truly remarkable. He's a special person, and we wish him the best as his career moves forward."
The Chiefs will designate Berry as a post-June 1 cut and save about $9.5 million against the salary cap in 2019, according to Terez A. Paylor of Yahoo Sports.
Berry, meanwhile, will now hit free agency for the first time in his career. He figures to attract plenty of suitors that need an enforcer in the secondary.