The Cowboys released Olawale on Wednesday, Aaron Wilson of the Houston Chronicle reports.
Olawale decided to opt out of the 2020 season, Rob Phillips of the Cowboys' official site reports.
The Cowboys have picked up the 2020 option on Olawale's contract, Field Yates of ESPN reports.
Olawale played all 16 games during the 2019 season but failed to receive a touch on offense.
Olawale may serve as Ezekiel Elliott's primary backup for Thursday's game at Chicago with Tony Pollard (ankle) inactive, Clarence E. Hill Jr. of the Fort Worth Star-Telegram reports.
Olawale played six offensive snaps in Monday night's win over the Giants.
Olawale agreed to an undisclosed contract with the Cowboys, Ian Rapoport of NFL Network reports.
Olawale played seven offensive snaps during Saturday's playoff loss to the Rams. He finished up the regular season with two catches on four targets for 13 yards.
Olawale logged 10 offensive snaps during Sunday's preseason game against the Cardinals.
Olawale exited Wednesday's practice with an injury to his right arm, Brandon George of The Dallas Morning News reports.