Eagles executive vice president of football operations Howie Roseman told reporters that the team would not use the tag on Foles on Wednesday at the NFL scouting combine in Indianapolis.
"We've spent a lot of time discussing this internally and with him and we've decided to let Nick become a free agent," Roseman said.
Foles, 30, completed 72.3 percent of his throws for 1,413 yards, seven scores and four interceptions in five starts last season for the Eagles while filling in for injured starter Carson Wentz. Foles completed 56.4 percent of his passes for 537 yards, five scores and two interceptions in seven games during the 2017 season. He posted a 6-2 record as a starter while with the Eagles in the last two seasons.
"It's hard when you have someone who's incredibly valuable to your organization at the most important position in sports," Roseman said. "And at the same time, we've had incredible success with him when he's had to play. Four playoff wins over the last two years. Great teammate. Huge resource for Carson and Nate Sudfeld, as well.
"But at the same time, he deserves an opportunity to lead a team. It's a goal of his to lead another team and lead another locker room."
Roseman would not elaborate on trade discussions with other teams. He also said he thinks Foles and Wentz are both top-15 quarterbacks in the NFL.
Foles completed 72.6 percent of his throws for 971 yards, six scores and one interception in leading the Eagles through the 2017 postseason to win his first Vince Lombardi trophy.
The seven-year veteran was named to the Pro Bowl in 2013 after throwing 27 touchdowns against just two interceptions in 13 games for the Eagles. He also has suited up for the St. Louis Rams and Kansas City Chiefs.
The Eagles signed Foles to a two-year, $11 million contract in March 2017. Foles opted out of his contract by paying back $2 million to the Eagles in early February.
The NFC East franchise is expected to receive a compensatory pick, possibly as high as the third round in the 2020 NFL Draft, in exchange for letting Foles leave in free agency.
He officially hits the market as an unrestricted free agent on the first day of the new league year. He is free to sign with any team.
Eagles coach Doug Pederson told reporters he backed Wentz and spoke with Foles at the end of the season, and that the veteran knew his feelings about the situation. He also said that Wentz -- who has missed eight games in the last two seasons -- knows he needs to stay on the field to have success for the Eagles.
"We know how we all feel about Carson," Pederson said. "Carson is our quarterback. I love everything about Carson Wentz. The way he attacks the job every single day. The way he competes. The way he embraces the locker room."
Wentz is playing in the final season of his $26.7 million rookie contract.