Adam Schefter of ESPN confirmed the report:
Meanwhile, Albert Breer of NFL.com looks at the move from a financial perspective and notes that Tebow will hit the waiver wire this afternoon:
Tebow arrived in New York with a lot of fanfare after being traded to the team before the 2012 season, but he rarely saw the field. The Jets used him in a limited Wildcat role and even on special teams, but he wasn't given a chance to start as a quarterback under head coach Rex Ryan.
With the team signing David Garrard this offseason and drafting Geno Smith in the second round of the 2013 draft, the former Florida star became expendable.
Tebow may find it very difficult to find a job in the offseason. It's clear at this point that most NFL teams don't view him as a starter—per Schefter, the Jets tried to trade him, to no avail—and he brings a media firestorm with him wherever he goes.
Since hitting the NFL, Tebow has seen his every move heavily scrutinized and highly publicized. One of the most decorated college quarterbacks of all time—he won two national championships and a Heisman Trophy while at the University of Florida—Tebow is also an extremely polarizing figure, as he openly promotes his religious beliefs.
He is polarizing as a quarterback as well, with an unorthodox throwing motion and low completion rate for his career (47.9 percent). However, he is a bruising, physical runner and is the sort of dedicated, hardworking athlete that coaches and fans love.
One way to rejuvenate his professional career would be to embrace a switch to a new position. He has the athleticism to play as an H-back and would be a very effective goal-line running back.
There are roles for him to fill in this league. Unfortunately, quarterback doesn't appear to be one of them at this point.