Hillis, 29, was set to count $945,000 against the cap during the 2015 season.
Hillis signed a two-year, $1.8 million contract with the Giants in October 2013. He played in nine games this season, rushing for 115 yards on 26 carries and also had 10 catches for 87 yards before being placed on injured reserve because of a concussion.
He has 696 rushing attempts for 2,832 yards and 23 touchdowns and 134 receptions for 1,050 yards and three touchdowns in his career.
- Scooby Axson