The first indication of Woodson's pending release came from a post on his winery's Twitter account, TwentyFourWines.
"Thank you Green Bay; It was a great run," the tweet said, followed by a picture of Woodson in a Packers uniform.
Later, Ian Rapoport of NFL Network tweeted comments from Woodson's agent, Carl Poston.
"They're getting ready to release him," Rapoport quotes Poston as saying. "It's part of the business."
The Packers would not comment on the report Friday morning.
Releasing Woodson would save the Packers more than $10 million from their 2013 salary cap.
Woodson, 36, suffered a broken collarbone this past season and missed nine games. He recorded only 1.5 sacks and one interception, but the NFL's 2009 Defensive Player of the Year and former Heisman Trophy winner doesn't want this to be the end of his career.
"Absolutely," Woodson said Dec. 21 when asked if he plans to play in 2013. "Until somebody tells me I'm not, this (Green Bay) is where I plan on playing."
The Packers added cornerback Casey Hayward in the second round and safety Jerron McMillian in the fourth round of the 2012 draft, but Woodson didn't see that as any indication he would be released this offseason.
"If that conversation comes around, it comes around," Woodson said in December. "But, as far as I know is, anything that I expect is that I'll be a Green Bay Packer. That's all I have to say about that."
According to Rapoport, Woodson's agent indicated Woodson will play elsewhere next season instead of retiring.
"I just talked to him; He sounds like he has a lot of football left," Poston said via Rapoport. "He'd like to go play for a contender, win another Super Bowl. He caught that bug."
Follow Paul Imig on Twitter.