The 32-year-old had an underwhelming 2020, starting just four of his 12 games and recording 35 receptions for 388 yards and two touchdowns.
Linebacker David Mayo has also been released just one season into his three-year deal. The moves save the Giants $8.4m in cap space.
Writing on social media following his release, Tate said: "I appreciate the conversations and professionalism the Giants management showed me earlier today.
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