Coleman played in all 16 games last season and saw action in nearly 50 percent of the defensive snaps as a nickel cornerback.
He played sparingly on special teams, and the Jaguars didn't believe he could line up anywhere except the slot.
Coleman also was due to make a little more than $1.5 million in 2012.
Coleman spent the previous five seasons with the New York Jets. He signed a three-year deal worth up to $7.4 million with the Jaguars in July 2011.