Benjamin was set to make $1.05 million on his one-year contract with the 49ers. He will instead receive either a $150,000 or $350,000 stipend, depending on whether he is deemed high-risk or a voluntary opt-out.
The 30-year-old played the last four seasons with the Los Angeles Chargers. He was limited to five games in 2019 because of a quad injury, finishing with six receptions for 30 yards.
Benjamin's numbers dropped in each of his four seasons with the Chargers, and he never reached the 68-reception, 966-yard heights of his 2015 season with the Cleveland Browns.
In eight NFL seasons with the Browns and Chargers, Benjamin has recorded 208 receptions for 3,143 yards and 19 touchdowns. He was expected to compete for a roster spot among a large group looking to latch on as the third or fourth wideout on the 49ers' depth chart.