McAlister, who started for Baltimore's Super Bowl winning team in the 2000 season, ranks third on the Ravens' career list with 26 interceptions and scored seven touchdowns -- including a 107-yard return of a missed field-goal attempt.
McAlister, 31, started five games last season before being benched, and he was placed on injured reserve Nov. 11 because of an injury to his right knee. McAlister finished the season with three interceptions and 19 tackles.
McAlister was scheduled to make $8 million this year.
"We want to thank Chris for all he did for the Ravens in the past 10 years," Ravens general manager Ozzie Newsome said in a statement released by the team. "He was a major contributor to many big wins, including the Super Bowl."
Copyright 2009 by The Associated Press