Baker, who signed a three-year contract extension last September, had 145 career receptions for 1,505 yards and 12 touchdowns since being drafted by New York in the third round in 2002.
The 29-year-old tight end was due $9 million in guarantees over the next three seasons if he remained on the roster on March 5. There's a chance the Jets could re-sign him for less money in free agency.
He caught 21 passes for 194 yards and no touchdowns last season, but had a career-high 41 receptions in 2007 and is a reliable third-down receiver. Baker lost some playing time to rookie Dustin Keller, who became a favorite target of Brett Favre with 48 catches for 535 yards and three touchdowns.