Russell, the No. 1 overall draft pick in 2007, signed a 6-year, $68 million contract, and was waived in May 2010 after three unproductive seasons. The team already owes $49.6 million in dead money this season to players no longer on the roster.
Russell was paid $36.4 million over that time period and was still owed $3 million at the time of his release.
The team filed a grievance against Russell, seeking repayment of $9.55 million in salary advances. Russell also filed a grievance saying he was owed an additional $9 million.
Russell had a 7-18 record as a starting quarterback, completing 52.1 percent of his passes with 18 touchdowns, 23 interceptions, 15 lost fumbles and a passer rating of 65.2. In the past couple of months, Russell has reportedly lost 50 pounds trying to make a comeback in the NFL.