The 33-year-old tight end is not expected back in Green Bay, NFL Network Insider Ian Rapoport reported, per sources informed of the situation.
Graham is entering the final year of his contract, which is due to pay him $8 million and carries a cap hit of $11.6 million. If the Packers release Graham, they can save $8 million off that latter number.
Graham caught 38 passes in 16 games last season, just five more than his career low of 31 recorded in his rookie season with the Saints. His three touchdowns and 447 yards showed he can still be productive, but he's no longer regarded as a high-level talent wanted by nearly every team as he was five years ago.
With just $20.4 million in cap space, per Over The Cap, Green Bay could be looking to clear some room as free agency approaches. Clearing $8 million by cutting loose an aging tight end who was still productive but not quite worth the cap number he's carrying would seem wise for a team that reached the NFC Championship Game last season.