McFadden, 30, was active for one game this season. He had one carry for negative-2 yards in that contest. The 10-year veteran had just 87 yards on 24 carries in three games last season. He had 239 carries for 1,089 yards and three scores during his first season in Dallas in 2015. McFadden was the No. 4 overall pick in the 2008 NFL Draft. He played his first seven seasons for the Oakland Raiders.
McFadden will be free to sign with any team, once he clears waivers.
Star running back Ezekiel Elliott is allowed to return to the Cowboys in Week 16 against the Seattle Seahawks, after he completes his six-game suspension. Elliott had 783 yards and seven scores on 191 carries before leaving the team. He also had 210 yards and two scores on 19 receptions this season.
Morris has 296 yards on 51 carries this season.
The Cowboys own the No. 4 rushing offense in football, at 134.8 yards per game.
The McFadden move will be made official on Monday, as waivers don't take place on Sundays.