The release of Nelson comes after the Raiders spent big at the wide receiver position by acquiring Antonio Brown in a trade and then restructuring his contract to give him more money and signing Tyrell Williams to a four-year contract.
Williams signed a deal worth $47 million with $22 million guaranteed, a source told Schefter.
Nelson, who turns 34 on May 31, had 63 receptions for 739 yards and three touchdowns last season, his first with the Raiders. The Raiders gave Brown a new three-year deal worth up to $54.125 million, with $30.125 million guaranteed, a source told Schefter.
The Raiders also agreed to big-money deals with left tackle Trent Brown (four-year, $66 million contract that includes $36.75 million guaranteed, per Schefter) and safety Lamarcus Joyner (four-year, $42 million with $16.7 million guaranteed, per reports).
Nelson spent the first nine seasons of his career with the Green Bay Packers, catching 550 passes for 7,848 yards and 69 touchdowns.