"We made this move to give us more flexibility in building our squad for the new season," said Toronto FC Head Coach and Technical Director Aron Winter. "This creates more cap space which will help us create a team capable of playing the style of soccer we are looking for."
Barrett, 25, joined Toronto FC from Chicago Fire in July 2008. In 65 MLS appearances for Toronto, he scored 16 goals and registered eight assists. Last season, Barrett played in 23 league games, starting 18. He finished the year with seven goals and two assists.
Barrett was originally picked by Chicago Fire third overall in the 2005 MLS SuperDraft and will be entering his seventh season in the league.