The Nets announced the roster move on their official website.
Goodwin originally signed with Brooklyn in March. The guard averaged 7.9 points, 2.3 rebounds and 1.9 assists across 12 appearances for the team. He shot 55.7 percent from the field while playing 15.3 minutes per game for the owners of the NBA's worst record.
Although the sample size was small, he ranked third on the Nets in Player Efficiency Rating at 18.6 behind only Brook Lopez and Jeremy Lin.
In May, he told Gary Washburn of the Boston Globe he hoped Brooklyn would become more of a permanent home after bouncing around since being drafted in 2013.
"I can grow with this team, grow with the staff and organization," Goodwin said. "It's not disheartening if you're mentally tough. I can get through anything. I've been through it all. I know what it's like to be in the D-League. It's takes a different person to get out of it because you can get lost down there."
Playing time may have been tough to come by in the Nets backcourt, though. He'd likely have fallen sixth on the guard depth chart behind Lin, offseason acquisition D'Angelo Russell, Sean Kilpatrick, Isaiah Whitehead and Caris LeVert heading into the 2017-18 season.
Getting waived now should give Goodwin an opportunity to find a better fit before training camps get underway in September.