Muhammad would have received a $10 million bonus if he had been on the roster March 1. The Panthers had hoped to restructure Muhammad's contract, but when he declined they made him a free agent.
"The efforts to get a contract extension on Muhsin were unsuccessful, and we have decided to release him," General Manager Marty Hurney said. "Muhsin has been a valuable member of our team and we appreciate everything he has done for the Panthers."
Muhammad has spent his entire nine-year NFL career with the Panthers. He is the franchise leader in catches (578) and receiving yards (7,751).