Tebow, the backup to Mark Sanchez last season, was let go three days after the Jets selected West Virginia quarterback Geno Smith in the second round of the NFL draft.
"We have a great deal of respect for Tim Tebow. Unfortunately, things did not work out the way we had all hoped," Jets Coach Rex Ryan said in a statement.
"Tim is an extremely hard worker, evident by the shape he came back in this off-season. We wish him the best moving forward."
Tebow appeared in 12 games last season, starting two. He completed 6-of-8 passes for 39 yards. He also rushed for 102 yards.
Tebow joined the Jets after the Denver Broncos signed Peyton Manning following the 2011 season. The Broncos made Tebow the 25th overall selection of the 2010 draft. He started 14 games over two seasons in Denver, completing 167-of-353 passes for 2,383 yards, 17 touchdowns and nine interceptions. He had another 885 yards and 12 touchdowns rushing.
The Jets, after releasing Tebow and counting Smith, have five quarterbacks on their roster. Including Sanchez, Greg McElroy, who saw playing time last year when Sanchez and Tebow were injured, is on the roster along with David Garrard and Matt Simms, who were signed in the off-season.