Dickey will receive a $500,000 buyout and become a free agent.
The 42-year-old knuckleballer will receive the buyout even if he decides to retire, which the veteran is considering, according to David O’Brien of AJC.com.
Dickey, a former National League Cy Young winner, finished 10-10 with a 4.26 ERA across 190 innings last season.
In a related move, the Braves exercised the $4-million option on catcher Tyler Flowers.
Flowers, who underwent left wrist surgery in early October, posted a career high .823 OPS with 12 home runs and 49 RBIs in 99 games.