Kolanos, 24, played in only nine of Phoenix's 18 games this season and had two goals and one assist. He was a healthy scratch in most of the other games.
He was put on waivers Thursday; if he went unclaimed by the other 29 NHL teams Friday, Kolanos would have been sent to the Coyotes' AHL affiliate in San Antonio.
"I'm looking forward to the next chapter in my career now," Kolanos said.
Kolanos, whose overtime goal won the NCAA championship for Boston College in 2001, was the Coyotes' top pick in the 2000 NHL draft and he had 11 goals and 11 assists in 57 games in 2001-02.
But he suffered a serious concussion in Phoenix's first preseason game of the 2002-03 season and has scored just six NHL goals since.
"He's a nice young man. We just feel at this point in time maybe he needs a change, maybe he needs a new venue," said Coyotes coach Wayne Gretzky.