The 29-year-old becomes eligible for free agency.
Selected in the seventh round of the 2001 amateur draft, Tracy batted .237 in 98 games this year with eight home runs and 39 RBIs. He spent all of June on the disabled list with a strained right oblique.
Tracy hit .280 over parts of six seasons with the club with 78 home runs and 318 RBIs.
The Diamondbacks considered Tracy one of their anchors for the future after he hit .305 with 27 home runs in 2005. In 2006, the left-handed batter hit .281 with 20 homers and a career-best 80 RBIs.
Tracy signed a three-year, $13.25 million contract before the 2007 season, with a $7 million club option for 2010.
His production hasn't been the same since he had microfracture surgery on his right knee in September of 2007. Doctors later discovered a blood clot that, had it moved up his leg, could have been life-threatenting.
Blood-thinners eventually resolved the problem, but Tracy was relegated to the bench when he returned in May 2008 and never regained his old hitting form.
Thursday's moves left the Diamondbacks with 35 players on their 40-man roster.