Frandsen agreed in November to a $1 million, one-year contract that was not guaranteed. He will receive 45 days' termination pay, which comes to $245,902.
He became expendable following the signing of free agent Reed Johnson and the acquisition of Matt den Dekker in a trade with the New York Mets. Wednesday was the last day to put players on waivers and remove them from the roster before salaries are guaranteed.
Frandsen hit .259 with one home run and a team-high 11 pinch hits last season, his first in Washington. He made 42 starts and played in 105 games for the NL East champions, appearing in left field and at every infield position but shortstop.
He managed only three hits in 35 at-bats during spring training.
"I hope for his sake he gets a chance to land with somebody and can continue his career," Nationals manager Matt Williams said. "Any team would be lucky to have him."
Washington also reassigned outfielder Tony Gwynn Jr. to minor league camp.