The 27-year-old spent his entire career with Baltimore before Milwaukee acquired him at the July 31 trade deadline for second baseman Jonathan Villar and a pair of prospects, right-handed pitcher Luis Ortiz and infielder Jean Carmona.
Schoop hit .202 with four homers and 21 RBIs in 46 games for the Brewers, then was 0-for-8 in the postseason.
"We looked at what was a best-educated prediction of what we could expect going forward and the potential price tag for that, then compared that to some of our internal alternatives and what is potentially available externally and we decided to go in this direction," general manager David Stearns said. "Look, it was a bad deal, and that's on me. We made a trade for a player we thought was going to be here for basically a year-and-a-half, and I was wrong."
Milwaukee also failed to offer contracts to left-handers Xavier Cedeno and Dan Jennings. The Brewers agreed to a $2.5 million, one-year deal with infielder-outfielder Hernan Perez and an $887,500 deal with infielder Tyler Saladino.