From the team's official Twitter account:
McGahee only played 10 games for the Broncos last season but rushed for 731 yards and four touchdowns. That followed an excellent 2011 season, when McGahee appeared to rejuvenate his career by rushing for 1,199 yards and scoring five total touchdowns.
John Elway, the team's executive vice president of football operations, had this to say, according to the Broncos' official statement:
It’s never easy to part ways with a veteran player who made so many positive contributions to our team and community...I appreciate all of the competitiveness, toughness and leadership Willis brought to the Broncos. He was an integral part of our team’s turnaround during the past two seasons, and I wish him the best as he continues his NFL career.
Meanwhile, McGahee told ESPN's Josina Anderson that he wasn't surprised that the team released him:
Willis McGahee to me on being released by the #Broncos: "I knew it was going to happen. It is what it is. They are going younger."— Josina Anderson (@JosinaAnderson) June 13, 2013
He also told Anderson that he expected his NFL Career to continue:
Willis McGahee to me on his future in the NFL: "I will keep playing. I don't feel like I have to go out there and say what I have left. I know what I can do. I'm not worried about it. Once I get the opportunity, it will be all good."
Upon your exit, did the Broncos mention anything about returning at a lower figure?
"No. I know I haven't thought about it or looked that far right now."
McGahee told Anderson he'd like to play in several cities:
There are a lot of places I wouldn't mind playing. You got Miami, Dallas, Green Bay, San Diego, Oakland. That's not necessarily my order of preference though. All of those teams I mentioned I would go to with no problems.
With the team drafting Ronnie Hillman last offseason and Montee Ball this offseason, however, McGahee has apparently been deemed expendable. The team also has Knowshon Moreno on the roster.
He is a two-time Pro Bowl selection and was one of the NFL's best running backs in his first four seasons, rushing for 4,572 yards and scoring 32 total touchdowns.
He was drafted in 2003 by the Bills with the 23rd pick and missed his entire rookie season rehabbing three torn ligaments in his left knee, an injury sustained during the national championship game between his Miami Hurricanes and the Ohio State Buckeyes. It was a gruesome injury, and his recovery was quite impressive.
In 2007, he was traded to the Ravens, though he would eventually lose his starting job to Ray Rice.
He was signed by the Broncos in 2011 and was thrust into a starting role, as Moreno missed much of the season battling injuries. While his release isn't shocking—the Broncos currently have seven running backs on the roster—McGahee certainly proved his worth the past two seasons in Denver.