The second-year pro out of Georgia suffered a cartilage tear in his right knee in August. He later underwent knee surgery and did not play again. He had started every contest in 2003, recording 88 tackles, 1½ sacks and one interception.
"He's going to continue his workouts and then get ready for the off-season program we're going to have," Coach Steve Mariucci said.
"It's a physical thing for the most part, but because my knee is not right physically it's holding me back mentally," said Bailey, who took part in team drills the past two weeks.