"I want to thank DeMarco for his contributions as a Titan, not only for what he did on the field but also in the locker room and in the community," Titans general manager Jon Robinson said in a statement. "He was a pro in every facet and we wish him and his family the best moving forward."
Murray has two years of non-guaranteed money left on his contract, which was restructured after he was acquired from the Philadelphia Eagles in a 2016 trade.
He was scheduled to make $6.5 million in the 2018 season, and releasing him clears $6.5 million of cap space.
Murray, who turned 30 last month, had career lows for rushing yards (659) and yards per carry (3.6) despite starting 15 games in 2017. He was also hampered by injuries and was inactive for the Titans' two playoff games because of a knee injury.
Murray led the NFL in rushing in 2014 while with the Dallas Cowboys, when he ran for 1,845 yards, averaging 115.3 yards per game in the regular season. He totaled another 198 rushing yards in Dallas' two playoff games that season.
Murray said in January that he still believes he can be a lead back in the NFL.
Henry led the Titans in rushing in his second NFL season in 2017. He ran for 744 yards during the regular season and added 184 yards while starting both playoff games.