He will become a free agent if he goes unclaimed by another team on waivers.
Lindsay ran for 130 yards and a touchdown in 50 attempts this season for a team that ranks 31st in Football Outsiders' rush DVOA. Lindsay lost 3 yards on his only carry in the Texans' 22-13 victory over the Tennessee Titans on Sunday.
Lindsay was part of the group of veteran running backs whom Texans general manager Nick Caserio signed during the offseason. Houston traded Mark Ingram to the New Orleans Saints last month, leaving running backs David Johnson and Rex Burkhead on the roster. Houston has also added running back Royce Freeman.
The Texans signed Lindsay to a deal in March worth $3.25 million with $1 million guaranteed and $500,000 in incentives.
The former Pro Bowl running back became available this offseason when the Denver Broncos rescinded the RFA tender they had placed on him that would have allowed them to match any contract but would not have provided the team any compensation if he signed elsewhere.
He rushed for over 1,000 yards in each of his first two seasons with the Broncos and had 2,550 rushing yards in three seasons with Denver. He also rushed for 17 touchdowns.
The news was first reported by SportsTalk 790.
ESPN's Dan Graziano contributed to this report.