NFL Network's Mike Garafolo first reported Thursday morning that the team would cut the veteran, per his wishes.
"We have been lobbying for his release for some time now and appreciate the Bengals granting our request," LaFell's agent Jonathan Feinsod said.
LaFell spent the past two seasons as the No. 2 receiver in Cincinnati, compiling 1,410 yards on 96 receptions with nine total touchdowns.
The 31-year-old entered training camp battling for playing time with several younger receivers. Bengals coach Marvin Lewis noted this week LaFell was "feeling the heat" from other wideouts.
John Ross, the team's 2017 first-round pick, has been the talk of Bengals training camp. The speedster, who was compared to Marvin Harrison by director of player personnel Duke Tobin last preseason, is finally healthy and looks to take over the No. 2 duties alongside A.J. Green.
Cutting ties with LaFell at this stage allows the youngsters more practice time and reps during preseason games as the Bengals reconfigure their depth chart.
LaFell, who previously spent two seasons with the New England Patriots and four with the Carolina Panthers, will be free to sign elsewhere once the transaction goes through Thursday. With the Patriots currently looking for depth at receiver, a return to Foxborough could be one option for the veteran.