The 16-year veteran made waves this offseason when he said he'd consider retirement if the right offer did not come his way a year after he made a reported $3.3 million on an incentive-laden one-year deal.
He played all but seven defensive snaps for the Raiders in 2013 and finished with 97 tackles -- third on the team -- with two sacks, an interception, three forced fumbles and two fumble recoveries, one of which was returned for a 25-yard touchdown against the San Diego Chargers.
Both coach Dennis Allen and general manager Reggie McKenzie had said they want him back.
Woodson turns 38 on Oct. 7.
ESPN.com Raiders reporter Paul Gutierrez contributed to this report.