Carroll, a defensive back, signed a three-year, $10 million deal that included a $3 million signing bonus after starting 16 games last season for the Philadelphia Eagles.
The 30-year-old Carroll has not suited up for the Cowboys since sustaining a concussion in a 42-17 loss to the Denver Broncos in Week 2. He has made five tackles this season.
Carroll, who may also be facing a suspension after being arrested for DUI this offseason, will be free to sign with any team once his release becomes official.
Jourdan Lewis, a third-round pick of the 2017 draft, has fared well with the Cowboys (2-3), who also feature Orlando Scandrick and Anthony Brown as the starting cornerbacks. Second-round selection Chidobe Awuzie was shuffled to safety during Sunday's 35-31 loss to the Green Bay Packers.