The Rangers made the move Thursday, one day after placing Redden on waivers. Now the 35-year-old Redden is an unrestricted free agent.
Redden has spent the past two seasons with Connecticut of the AHL after notching five goals and 35 assists in 156 regular-season games with the Rangers over two seasons after he signed a six-year, $39 million free-agent deal to leave Ottawa.
The accelerated compliance buyout, approved in the new labor deal, means Redden will earn a pro-rated $3.341 million for this season plus two-thirds of the $5 million he was set to earn next season.
In 994 career NHL games, the 35-year-old Redden has 106 goals and 344 assists.