McGee was released Thursday, ending a nine-year run with the team that selected him in the fourth round of the 2003 draft. The move comes one week after Buffalo cut ties with safety George Wilson and linebacker Nick Barnett.
"Terrence has been a contributor to the Bills organization for 10 years and we thank him for his efforts on the field and off," general manager Buddy Nix said in a statement released by the team. "We wish him the best of luck in the future."
McGee was placed on injured reserve with a knee problems in November and has missed 26 games over the past three seasons. The Bills selected cornerback Stephon Gilmore with the 10th-overall draft pick last April, putting McGee on borrowed time in Orchard Park.
"I'm trying to get my knee back to 100 percent and hopefully find a landing spot somewhere else," McGee said. "I definitely have not thrown in the towel. That's not even in my brain right now.
"Hopefully, when I get healthy I'll have a shot at a couple teams and show what I can do. Once my knee's all right, I'm all right."
McGee might catch on elsewhere, but ending three of his last four seasons on injured reserve certainly doesn't debunk any theories he's in full breakdown mode at age 32.
Follow Dan Hanzus on Twitter @DanHanzus.