Orton, 31, wants to retire from football.
The Cowboys had hoped that Orton would return for a third season as the backup to Tony Romo. Orton had not attended any team activities this offseason.
Had Orton retired prior to his release he would have had to payback $3 million of the signing bonus in addition to missing out on his salary for the 2014 season which was set to be $3.2 million.
Dallas Cowboys are releasing QB Kyle Orton, per source.
— Adam Schefter (@AdamSchefter) July 15, 2014
Orton made one start with the Cowboys, last years Week 17 loss to Philadelphia. The Cowboys signed former Cleveland Browns first round bust Brandon Weeden in case Orton did not return.