Holmes has appeared in just 15 games over the past two seasons due to injuries.
In 2013, Holmes was limited to 11 games with a hamstring injury. He caught 23 passes for 456 yards and one touchdown.
The eight-year pro out of Ohio State was limited to just four games in 2012 after suffering a Lisfranc injury in his left foot.
The Jets acquired Holmes from the Pittsburgh Steelers in exchange for a fifth-round draft pick in April 2010. While with Pittsburgh, Holmes caught the game-winning touchdown in Super Bowl XLIII and posted career highs with 79 catches for 1,248 yards and also hauled in five touchdowns in 2009.
The Steelers selected Holmes with the 25th overall pick in the 2006 NFL Draft.
"I appreciate Tone's contributions over the last four seasons. I've always admired his knack for making the clutch play," Jets coach Rex Ryan said.
"He's a tremendous competitor who wants the ball in his hands when the game is on the line. I wish him nothing but the best."