Daniels, 31, had one year left on a three-year deal worth about $15 million. He would have counted for $6.25 million against the salary cap for the 2014 season. By releasing Daniels, the Texans save $4.5 million against the cap.
Houston is working on re-signing tight end Garrett Graham,
Daniels, 31, a two-time Pro Bowler, has been with the team since 2006. He has 385 career receptions for 4,617 yards and 29 touchdowns.
Daniels was drafted by the Texans in the fourth round of the 2006 NFL Draft.
The Texans also released cornerback Bryce McCain and defensive tackle Earl Mitchell today. The AP is reporting that Mitchell has agreed to terms on a $16 million, four-year deal with Miami.
As for quarterback Matt Schaub, he's still on the roster, but according to ESPN, the Texans are talking to free agent QB Josh McCown. McCown, a Texas native, spent the past three seasons in Chicago. He started five games for the Bears last season and played in eight. McCown went 3-2 as a starter and had a 109 passer rating overall last season.
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