In October, the Texans traded a third-round pick to the Raiders for Conley, who is due to make $1.892 million in 2020.
Despite not picking up the option, coach and general manager Bill O'Brien said in his pre-draft news conference that Conley "really graded highly in his games with us this year" and that the team is "really excited about him" going forward.
The Texans drafted cornerback John Reid in the fourth round, but Conley and 2019 second-round pick Lonnie Johnson are still expected to start on the outside for the Texans in 2020. Bradley Roby will be Houston's slot corner. Former Texans cornerback Johnathan Joseph will not return to his longtime team after signing a one-year deal with the Tennessee Titans on Wednesday.
In 14 games last season with the Raiders and Texans, Conley had one interception, 13 passes defended and 50 tackles.
The Houston Chronicle first reported that Conley's option would not be picked up.