The move will be done to ease the team's salary-cap issues.
The Raiders signed Incognito in 2019. He was due $5 million in base salary in 2021.
Incognito missed most of the 2020 campaign after being placed on the injured reserve in Week 2 following an Achilles injury. The 37-year-old is now fully healthy and looks forward to continuing his career in Las Vegas or elsewhere, Rapoport adds.
A second-round selection in the 2005 draft, Incognito has started 14 games during his time in the silver and black.
The four-time Pro Bowler has spent time with the then-St. Louis Rams, Buffalo Bills, and Miami Dolphins.
The Raiders will free up nearly $15 million by releasing Jackson and Incognito.