Edmonton's reported decision paves the way for T.O. to sign with any CFL team.
ESPN.com's Kevin Seifert reported Tuesday that the Eskimos had opened their 10-day window to negotiate a potential contract with Owens.
Owens' agent, Jason Staroszik, told TSN's Dave Naylor on Monday that his 44-year-old client "absolutely 100 percent" wants to play in the CFL.
Staroszik also said, "[Owens] still feels like he has some football years left in him. He just loves the game and wants to get back to playing whether it's the CFL or NFL."
Owens last regular-season action in the NFL came during the 2010 campaign with the Cincinnati Bengals. He finished that season with 72 receptions for 983 yards and nine touchdowns.
T.O. signed with the Seattle Seahawks in 2012, but he was released prior to the start of the regular season.
Owens was selected as part of the Pro Football Hall of Fame Class of 2018, and he will be inducted in August.
He will not be present at the ceremony, though, as Owens instead decided to give an induction speech at his alma mater, Tennessee-Chattanooga.
Owens is among the all-time leaders in several NFL receiving categories including receptions (eighth with 1,078), receiving yards (second with 15,934) and receiving touchdowns (third with 153).