Chamberlain, 29, will now become a free agent.
The Tigers signed Chamberlain before the season to a one-year, $1 million contract, and he went 0-2 with a 4.09 ERA in 22 innings. The nine-year veteran, in his second season with the Tigers, is 25-21 for his career, most of which was spent with the Yankees.
Detroit designated both Chamberlain and lefty Tom Gorzelanny on the same day and called up Jeff Ferrell from Triple-A Toledo and Drew VerHagen from Double-A Erie.
After clearing waivers, Gorzelanny accepted an outright assignment to Toledo. Ferrell has made two appearances since being called up, giving up three earned runs in two innings. VerHagen was wild in his one outing, walking four and giving up two runs in one inning.
Betsy Helfand is an associate reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.