Rice is now eligible to sign with any NFL team.
Rice was suspended indefinitely Sept. 8 for violating the NFL's personal conduct policy after a video of him hitting his then-fiancée was released publicly. Goodell originally had suspended the running back for two games.
Rice's appeal of his indefinite suspension was heard by U.S. District Judge Barbara S. Jones earlier this month. Ravens general manager Ozzie Newsome testified under oath Nov. 6 in the appeal hearing that he heard the former Baltimore running back tell Goodell during his June 16 disciplinary hearing that he had hit his then-fiancée in a casino hotel elevator, sources told "Outside the Lines."
Rice also testified, as did his wife, Janay. Details of what Rice and his wife testified to Nov. 6 and what Goodell said Nov. 5 were not released to ESPN's "Outside the Lines" because of a gag order that Jones imposed. But sources said Newsome backed Rice's previous accounts of what he told Goodell. Goodell spent the majority of his time testifying under cross-examination by outside union attorney Jeffrey Kessler, sources said.
Rice, 27, is a three-time Pro Bowler and helped the Ravens win Super Bowl XLVII. He rushed for 6,180 yards and 37 touchdowns in six seasons with Baltimore.
ESPN.com's Don Van Natta Jr. contributed to this report.