Dozier, 31, was designated for assignment Monday after batting .183 with two homers and nine RBIs in 29 games this year.
Dozier is in the third season of a four-year, $25 million extension signed in March 2021.
The Royals are on the hook for the remainder of his $7.25 million in 2023 and the $9 million he's owed in 2024.
"It was an extremely tough decision based on who he is as a person, as a teammate, as a worker," Royals skipper Matt Quatraro said earlier this week. "We think the world of him as a person."
Dozier is a career .238/.305/.420 hitter with 73 homers and 235 RBIs in 594 games, all with the Royals. His best season was 2019 with 26 homers, an MLB-leading 10 triples and 84 RBIs.