The Giants placed the running back on season-ending injured reserve, two days after a knee injury kept him out for a second consecutive game.
Jacobs finished the season with 238 yards rushing and four touchdowns -- most among Giants running backs -- and two receptions for 13 yards in seven games.
The 31-year-old won two Super Bowl rings with Giants, before spending a tumultuous 2012 with the San Francisco 49ers. He returned to the Giants this season but has just 63 rushing attempts the last two seasons.
Jacobs recently said he would need offseason surgery. How the nine-year pro bounces back from that surgery will determine if he will get another shot with the Giants or any other NFL team.
New York also signed linebacker Marcus Dowtin from the practice squad Tuesday night, terminated the practice squad contract of linebacker Darin Drakeford and signed defensive end Kendrick Adams and defensive back Chaz Powell to the practice squad.