The team announced the move Monday, stating that he will not be added to the team's 25-man roster, making him a free agent.
The lefty had an opt-out clause in his contract that if he was not added to the Major League roster, he could become a free agent. The 33-year-old had signed a minor league contract with the Yankees toward the end of spring training.
In 11 big league seasons, seven in the National League and four in the American League, Gonzalez is 127-97 lifetime with a 3.69 ERA.
With the Yankees' Triple-A team in Scranton/Wilkes-Barre, Gonzalez went 2-1 with a 6.00 ERA and 19 strikeouts.