Kerley was released Saturday, Chris Brown of the Bills' official site reports.
Kerley caught two of four targets for just seven yards in Sunday's loss to the Ravens.
Kerley caught his only target for 18 yards during Sunday's preseason loss to the Bengals.
Kerley, Kelvin Benjamin and Andre Holmes took the snaps with the first team during Friday's training camp practice, Mark Gaughn of The Buffalo News reports.
Kerley, who signed with the Bills as a free agent in April, could be a leading candidate for the No. 3 slot job, Vic Carucci of The Buffalo News reports.
The Bills signed Kerley to a one-year deal Monday, Jay Skurski of The Buffalo News reports.
Kerley was waived by the Jets on Monday, Ralph Vacchiano of SportsNet New York reports.
The Jets moved Kerley to their roster exception list after he completed his four-game suspension for violating the NFL's performance-enhancing drugs policy earlier this week, Calvin Watkins of Newsday reports.
Kerley is eligible to be reinstated from his four-game suspension, Rich Cimini of ESPN.com reports.
The NFL suspended Kerley for four games Monday for violating the league's performance-enhancing drug policy.