McFadden was a healthy scratch the past two weeks. The 30-year-old back has just one carry in one game played this season.
"Darren's been a real good player for us and has been just a first-class guy on our football team," Cowboys coach Jason Garrett said, per the team's official website. "We had some good discussions the last couple days. We just felt like it was in the best interest of our team and really the best interest of Darren McFadden as well to release him and give him another opportunity go somewhere else."
The running back will hit waivers where an RB-needy playoff team could add the veteran for the stretch run. While McFadden could be part of a committee, we shouldn't expect a large role for a veteran who has 85 total rushing yards the past two seasons.