The right-handers instead have been cut loose, Phillies General Manager Ruben Amaro Jr. said in a statement.
"While we will not pick up either of their options, we will remain in contact with representatives for both players about the possibility of bringing them back for the 2012 season," Amaro said. "Brad and Roy both made significant contributions to the Phillies over the past several seasons."
Lidge, 34, spent four seasons in Philadelphia, part of the time as its closer. He went 0-2 with a 1.40 ERA and one save over 25 appearances last season and was a perfect 12-for-12 in post-season save opportunities with the team.
Oswalt, also 34, was obtained from the Houston Astros in July 2010 deadline trade. The starter went 16-11 with a 2.96 ERA in his stint with Philadelphia.