Among those released were Law, backup quarterback Jay Fiedler, offensive tackle, Jason Fabini and running back Jerald Sowell.
The Jets were $20 million over the salary cap.
After just one season with the Jets, Law, 32, who played nine of his 10 NFL seasons with the New England Patriots, had a career-high 10 interceptions and 62 tackles.
"We were very fortunate to have a player of Ty's caliber in 2005," said Jets General Manager Mike Tannenbaum. "Ty is a warrior and a class act and we appreciate his contributions this past season."
For his career, the 32-year-old Law, who was a first-round draft pick by the Patriots out of Michigan in 1995, has 46 interceptions, returning seven of them for touchdowns.