"The Packers told Charles they're going in a different direction," Woodson's agent, Carl Poston, told the Associated Press. "Charles told me he still wants to play -- for a Super Bowl contender."
Before the 2010 season, Woodson signed a five-year deal worth $55 million. He missed nine games last season because of a broken collarbone.
Woodson sent out a tweet Friday, "We had a good run," hinting at the news.
Woodson was the NFL Defensive Player of the Year in 2009 and the Defensive Rookie of the Year in 1998. He spent the first eight years of his career with the Oakland Raiders, who drafted him out of the University of Michigan with the No. 4 overall pick. He's the only player in NFL history with touchdowns off interceptions in six straight seasons (2006-11).
In seven seasons with the Packers, Woodson had 38 interceptions and 11.5 sacks, bringing his career totals to 55 interceptions and 17 sacks.
The Packers clear about $10 million in salary-cap space by releasing Woodson. It is expected that once he is officially released, numerous teams will be interested in signing him.